TALLAHASSEE, Fla. — The Florida Senate on Monday gave final approval to a bill that would allow interest rates as high as 36% on consumer-finance loans. The Senate voted 22-9 to pass the bill (HB 1267), which the House approved last week.
The bill has been finalized and is set to be signed into law by Gov. Ron DeSantis.
Senate sponsor Joe Gruters, R-Sarasota, said the bill will “expand credit opportunities” for consumers.
According to Gruters and other advocates, this measure would offer more options to borrowers who currently resort to high-interest online loans. But Sen. Lori Berman, D-Boca Raton, described a maximum 36% interest rate as “predatory” and said people can get caught up in a cycle of taking out loans.
In Florida, there is a three-tier system in place for interest rates on consumer-finance loans. The first $3,000 of principal amounts can be charged at 30% annual interest, while amounts between $3,000 and $4,000 can be charged at 24%. For amounts between $4,000 and $25,000, the interest rate is 18%.
The proposed legislation aims to establish a uniform 36% maximum annual interest rate. Additionally, consumer-finance companies will face stricter regulations, such as the obligation to submit yearly reports to the state containing loan information.
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