FLACP and many members of the Floridians for Responsible Lending Coalition have defeated a bill for four consecutive years that would increase the interest rate on small dollar consumer finance loans under Chapter 516. Unfortunately, California company Insikt (now Aura) is returning for a fifth year seeking the same increase in interest rate on these loans.
Consumer Finance loans in Florida under current law are limited to 30% APR for loans up to $3,000, 24% APR for loans between $3,000 and $4,000 and 18% for loans above $4,000. These bills increase each tier by 6% for unsecured loans up to $10,000. This legislation moves us backwards with loans that cost borrowers even more.
Read a one-page information sheet about the bill here. For more information, here is a white paper analysis of the bill.