Life in Florida can be beautiful and enjoyable. However, residents here still struggle with their finances. There is this uncertainty whether you will make it to your next payday. A quick online payday loan can offer a temporary solution to your woes as you wait for the next payday.
In Florida, payday loans get commonly referred to as deferred presentment transactions. Although the state has been strict in lending and borrowing of payday loans, the service remains high in demand.
Therefore, there is a need to enforce some of the laws to ensure it works for all players.
Between 2016 and 2017 Florida residents took up to 7.7 million in payday loans within 12 months. However, close to a third of the population took more than 12 loans within the same period.
Most payday loan borrowers have gotten tricked into scams that cause them to lose their money. It is advisable to check on whether the state licenses a lender as a payday loan lender before transacting with them. A lender has to strictly adhere to the guidelines set by the state before they can get licensed.
Dealing with a licensed lender can be of utmost importance, especially if you disagree with them. The state will intervene through the relevant department and solve your issues. However, if you deal with a short term loan lender from other parts of the world, most likely on the internet, the state will not protect you.
There are different restrictions Florida sets for both lenders and borrowers. Here are some of the standard regulations;
Florida takes its citizens’ welfare at heart by ensuring they do not borrow more than they need or they can pay. Therefore, the state restricts $500 as the maximum one can borrow from a payday loan lender. There are no exceptions to this regulation.
Also, you cannot set a payday loan term at below 7 days or to more than 31 days in Florida. Also, borrowers should ensure that they pay loans within the set dates. Roll-overs are illegal, especially when they attract new interests during the new period.
However, there are ways lenders and borrowers can increase the loan term without adding any interest.
It is illegal to take more than one payday loan in Florida. Therefore, it is one loan per borrower, and flouting this rule is impossible because all quick loans get processed on a single database. Also, you can only take a loan 24 hours after repaying another.
Loan processing fees sometimes become too high on borrowers. In Florida, costs do not exceed 10% of the borrowed amount and lenders should not attempt to charge over that. Also, they can only charge a maximum of 5 dollars in verification fees.
There is also a need to restrict the collection of loans. If a borrower fails to pay, lenders cannot pursue any criminal charges against their borrowers. Also, the fees charged will remain the same, and it’s only a court that can order any additional charges if the lender files a lawsuit.
Florida payday loans are strict, especially in protecting the borrower’s interests. Therefore, everyone in the payday loan industry must stick to these confines to transact.