Urgent matters and high bills usually hit when you least expect them and call for instant cash. If you are a Florida citizen, payday loans online can provide the necessary funds on short notice. All you need to do to qualify is meet the underlying criteria and fill out a quick application. The approved loan will reach your bank account within hours, and you can use it any way you deem appropriate.
Payday loans in Florida are short-term cash advances of up to $500. Loan companies deposit the money within a day, and the consumer should pay the money back within 31 days. Below, you’ll find accurate information on payday loans in Florida, including the loan terms, APR, and fees.
Are Payday Loans Legal in Florida?
Yes, payday lending is legal in Florida, with the average loan amount being around $375. Although there’s no ban on payday loans, this southern state is very protective of its residents. More specifically, Florida has incorporated a 24-hour cooling-off period into law. This period allows you time to reconsider and cancel the loan if you manage to have other means for covering your financial needs.
As for repayment, the borrower has a maximum loan term of 31 days to pay back the cash advance. For those in default of the deadline, penalties cannot exceed the set limits imposed by law.
Like in most states, the deferred presentment law under the authority of the CFPB regulates payday lending. This act entails provisions on APR, terms, fees, and other payday lending matters. Companies that don’t follow these laws can face severe penalties imposed by the Consumer Financial Protection Bureau.
So, when you have no other choice for getting instant cash, be sure that you’re dealing with a licensed payday lender. Most licensed providers in Florida abide by state laws. To this end, they must also respond to FLOFR inquiries to keep their licenses valid.
Clients having a problem with a payday lender can file a complaint with the state and request help. If this is your case, there’s not much your state can do to protect you if you apply with an unlicensed lender. Hence, it’s best to avoid lenders with no license in Florida that operate online from another state or country.
Florida Payday Loan Terms
Florida residents who qualify for a loan can take a maximum of a $500 payday loan. The maximum loan amount excludes the money you pay for interest and verification fees, though. Additionally, the loan term ranges from seven days up to a maximum of 31 days, without the possibility of extending.
The only way you can extend a loan in Florida is through a repayment plan. The grace period can reach 60 days with no extra charges for the borrower. Note, however, that you must be subject to credit counseling to set up a repayment plan.
Here, we will also touch on the subject of installment loans. Florida’s House and Senate passed the Deferred Presentment Transactions Law for installment loans up to $1,000. In this case, the borrower has from 60 to 90 days to repay the loan.
When it comes to the purpose of using the loan proceeds, there are no restrictions whatsoever. Any urgent expenses, unforeseen bills, or car or home repairs are potentially sound reasons to apply for a small loan.
Eligibility For A Payday Loan in Florida
Requirements can vary across creditors, but some documents are mandatory throughout the state. When applying for payday loans online with MoneyZap, ensure you include the following:
- Proof that you’re 18 or over and a legal resident of Florida (provide a government-issued ID)
- Active and not overdrawn checking account to deposit the money
- Recurring income source of at least $1,000
- Valid email address and phone number
- Social Security Number (usually for online loans)
Your eligibility for our loan products will depend on whether you meet the criteria. We may contact you if we need to verify your data or if you need to submit more information. Still, we only approve one outstanding loan at a time with a maximum amount of a loan of $500.
How Many Payday Loans Can You Have in Florida?
Many are eager to know whether they can get another payday loan when they already have one. Unfortunately, this is not possible in the state of Florida, regardless of the lender or your payment capacity.
In short, you can only have one outstanding payday loan at a time. Bear in mind that loans get tracked through a central database, and there’s no way you can cheat the system. Hence, you must consider the 24-hour cooling-off period before taking out another loan when you pay off your debt. Having two outstanding loans at the same time is unlawful and impossible.
Laws and Statutes of Limitations on Legit Payday Loans in Florida
Payday loans in Florida fall under the scope of deferred presentment transactions. More precisely, deferred presentment means the act of writing a post-dated check for the funds borrowed now. Since the Deferred Presentment Act got passed, payday lending has been legal in Florida. As a result, all payday lenders need to get a license to operate in the state.
Interest Rates and Finance Charges for Florida Payday Loans
The central part of cash advance payment is comprised of the interest rate or APR. The typical APR for payday lending in Florida is 304%, based on the average rate for a $300 loan. To set things straight, the finance charges cannot exceed 10% of the loan amount. So, if you borrow a $100 loan for 14 days, you’ll have to pay $15 in costs. This sum includes the interest plus a $5 verification fee.
Florida law obliges payday lenders to present each consumer with a written disclosure of all the terms and fees. It’s up to you to read the details and accept the rates by signing the contract.
To illustrate how fees get calculated, we’ll give you an example. Suppose you’re taking a $200 payday loan in the state with a 14-day repayment term:
- Loan cost: $20 (10% of the loan amount)
- To return: $225
- Cost calculation: 10% fee charge of $200 = $20 + $5 verification fee
- Total loan cost: $25
- ARP calculation: $25 x $200 x 14 days = 0.00893 x 365 days x 100 = 326%
Florida Payday Loan Rollovers and Extensions
Besides the maximum loan amount, rates, and fees, borrowers must also know other payday loan details. These include the availability and number of rollovers, extensions, and repayment plans. You must also get familiar with the cooling-off period and default penalties.
In Florida, rollovers or extensions can only get approved under a repayment plan. So, if you can’t service your loan in full at the end of the loan term, the law stipulates a 60-day grace period. This grace period comes at no further cost but is dependent on a couple of things. First, you must arrange an appointment with a Consumer Credit Counseling Service within seven days. Second, completing the counseling within the 60-day grace period is mandatory.
Lender Regulations for Florida Payday Loans
Under Florida law, payday lenders must register their companies to issue payday loan contracts. This regulation concerns both online lenders and companies with a physical branch.
Besides the necessary state license, short-term loan creditors must disclose all details. The particulars can include repayment terms, rates, fees, and penalties. They must also deposit the amount of the loan as agreed.
The Florida Office of Financial Regulation obliges creditors to educate customers on lending issues. Each borrower must understand the potential risks, default penalties, and loan alternatives.
Last, Florida laws prohibit abusive collecting practices for unpaid loans. Hence, criminal action threats are illegal. Plus, the lender must send a mail notification before starting any legal proceedings against due contracts.
Defaulting on a Payday Loan in Florida — Collection Procedure
If you cannot repay the loan amount plus interest by the agreed-upon due date, you will default on the loan. Florida law sets the statute of limitations for unsettled debts at five years. If you fail to repay, your lender has five years to use the court system to collect the debt.
Yet, even if you default on the loan, lenders can’t do whatever they want to get the money back, meaning criminal activities against you for a bounced check are off-limits. The total cost of a single payday loan can only include extra charges for a bounced check imposed by the lender’s bank, so it’s best to inform your lender in advance that the check will bounce.
Extra fees, unless a lawsuit gets filed and the court imposes other costs, are also prohibited. However, payday lenders can seek to recover interest in the judgment. This interest caps at the judgment rate in the state and not a rate based on the payday loan fee.
If you believe a payday lender has violated the law, consider filing a written complaint. You can also call the Florida Office of Financial Regulation at (850)-487-9687. If there are solid grounds, the supervisor from that office will determine whether to pursue civil or criminal charges.
Can I Take a Bad Credit Loan in Florida?
The average credit score in Florida stands at 668, placing it in the fair range. Still, this doesn’t mean that applicants with a credit rating below fair can’t apply for a small loan.
First of all, many legit direct lenders in Florida offer loans to borrowers with any score. Some even specialize in bad credit products but impose higher rates to compensate for the risk. Secondly, you can always find a co-signer to boost your chances of getting a bad credit loan.
Can I Get ‘No Credit Check’ Loans in Florida?
If you’re looking for payday loans with no credit check in Florida, you’re not alone. ‘No credit check’ implies that a lender will not inquire about your credit history information. Moreover, lenders won’t check your borrowing data with the major credit bureaus.
If you don’t want to damage your credit history, Florida law allows you to apply for a payday loan without a credit check. But lenders need to check your creditworthiness, at least, in some way. They can perform a soft check when a lender pre-approves you for a loan, and this inquiry will not show on your report. Alternatively, you can exploit some other ways to prove you can afford the cash advance.
Payday lenders use a centralized tracking system to verify your debts. By doing this, creditors can also check your income. If they see you as a high-risk borrower, lenders can charge higher interest to lessen the consequences.
Overall, payday lending and installment loans with no credit checks are convenient for getting money fast. With this fast cash injection, those with a poor credit score can finance any emergency.