Florida Payday Loans- Other States Should Take Notice of the Regulations
Oz Hoopes is a freelance writer. Learn more about Florida payday loans at http://www.getecash.com/
Florida payday loans seem to be regulated somewhat more than most other states. While other states seem to be lacking on their regulation of the companies that provide these loans, payday loan companies in Florida must adhere to some strict guidelines.
The first thing that is noticeably different from many other state laws is the fact that these payday loan companies must not charge more than 10 percent interest on any loan, which is one of the lowest rates in the United Sates for these type of loans. However, it is good to keep in mind that a $100 loan at this rate for a two week period has an APR of 390 percent.
They also limit the consumer to one payday loan at a time. In many other states it is not uncommon for someone to be in debt to two or more payday loan companies at the same time. They also have laws in place which provide for the event of the consumer being unable to pay the loan back by their due date. In this instance the customer must be given a 60 day grace period in which to pay the loan back, but if this occurs the borrower must also adhere to certain requirements for the grace period. The customer must enter into a payback plan with the payday loan company through a credit counseling service.
The maximum amount anyone can borrow for Florida payday loans is $500, with a maximum term of 31 days. Most states are higher when it comes to the loan amount, with some even extending the payday loan amount maximum to $1500. The maximum term can be considered standard for most states, but there are a lot of payday loans that usually come due within 14 to 21 days after the date of the loan.
In Florida, there are no rollovers or extensions on loans. That is where many payday loan companies throughout the rest of the United States make a bundle of money, as when the customer cannot pay the loan when it is due, they can pay a small fee, usually about $15-$25, to extend the loan to pay it back at a later date.
Florida payday loans seem to be much more regulated than what you will find in other states, and it seems the way things are done there that they try to protect both the consumer and the payday loan company, which is something that other states should probably take a look at themselves.
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