Florida Payday Loans

Florida borrowers should know that all states regulate the payday loan industry differently. Florida payday loans have different operating procedures and regulatory guidelines than other states. Informing yourself about the laws governing payday loans will make your payday loan choice easier, faster, and safer.

Maximum Loan Amounts
Most states have maximums on the amount for which a payday loan can be issued. Florida is, in this case, no exception to the rule. The state limits a payday loan amount to no more than $500. Further, the state also requires that loans be issued with a term of 7-31 days, meaning that the consumer, depending on the loan, must pay back their loan within this period.

Finance Charges
Payday loans can be a very costly way to finance immediate expenditures. However, knowing that most people receive Florida payday loans for an emergency situation, the high rates and finance charges may be difficult to swallow, but absolutely necessary.

Florida payday loans have caps for finance charges and fees. The finance charge for providing the loan cannot exceed 10% of the principal amount plus a fee for verification of income and residency. Lenders typically incur local court and municipality fees to request records from local governments to verify a borrowers’ submissions on their loan request. These fees are passed onto the borrower through a verification fee paid by an addition to the principal amount.

Finance charges for a 14-day loan are capped at $15 per $100 of total borrowing. Additionally, the state caps the APR of a $100 loan for a 14-day period at no more than 390% interest, meaning the lender can earn no more than $390 in interest revenues on a 14-day loan held for an entire year.

Loan Limits
Florida payday loans cannot be issued to a person who has more than 1 loan outstanding. Thus, if you were to borrow $250 from a payday loan lender and later want to borrow another $250, your loan cannot be processed until the second loan is paid off. Additionally, you cannot rollover your balance from one loan to another, meaning that once issued, a single loan is a single loan. Restricting loan rollovers protects consumers by ensuring that a Florida payday loans company does not rollover your unpaid debt into a new loan, and thus charge you extra fees for another loan.

Finally, all Florida payday loans have a “cooling off” period of 24 hours. During the cooling off period, you are free to return the borrowed money back to the payday loan lender and incur no fees, interest, or other charges. This is to protect borrowers who might make short-term decisions and regret it later. If you agree to a loan, but decide within the first 24 hours that you do not wish to borrow the money, you can take it back to the lender, who has to cancel the balance and waive all fees and interest on the loan.

About Payday Loans
Remember that the many laws on the books for payday loans aren’t there just for the sake of being there; payday loans are heavily regulated because they can, if not paid off quickly, balloon into very large debt balances.

Payday loans should not be used as a routine source of funding. Instead, Florida payday loans should be regarded as a one-time source of capital for when you absolutely need it. Any loan you take from a payday loan lender must be repaid, and the interest and charges will quickly grow so large that repayment becomes difficult, if not entirely impossible. Never borrow more than you absolutely need so as to avoid paying interest on money you didn’t need in the first place. As you can see from the payday loan limits above, a payday loan company can make as much as $390 per year for every $100 you borrow, a sign that if you leave your loan unpaid, you’ll be in a world of financial pain trying to reduce your balance against ever rising interest charges.

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