Bill > H0937

This bill creates new legal provisions to prevent predatory lending practices in consumer finance loans by prohibiting lenders from using schemes or devices to circumvent existing state regulations. Specifically, the bill makes it illegal to offer consumer finance loans with interest rates, fees, or charges higher than those authorized by Florida law, regardless of the method of communication or the lender's physical location. The legislation declares that any consumer finance loans made in violation of these provisions are automatically void and uncollectible, meaning borrowers would not be required to repay the principal, fees, or interest. Furthermore, the bill establishes comprehensive criteria for determining when a person or entity can be considered a lender subject to these regulations, including factors such as holding the predominant economic interest in a loan, marketing or facilitating the loan, having rights to acquire the loan, or being involved in designing and controlling the loan program. The provisions aim to close potential loopholes that might allow predatory lenders to avoid state consumer protection regulations, with the new law set to take effect on July 1, 2025.

Business and Industry

https://www.flsenate.gov/Session/Bill/2025/937