On May 20, the Florida governor signed SB 546, which amends certain provisions related to the making of consumer finance loans. The provisions allow persons applying for a license to make and collect loans under the Florida Consumer Finance Act (FCFA) “to provide certain documents in lieu of evidence of liquid assets,” including a surety bond, certificate of deposit, or irrevocable letter of credit. The bill also prohibits licensees from charging borrowers a prepayment penalty for paying all or part of a loan’s principle before the payment due date. Additionally, provisions related to the grounds for denying a license or taking disciplinary action for certain violations for the FCFA are modified to include “[f]ailure to maintain liquid assets of at least $25,000 or a surety bond, certificate of deposit, or letter of credit in the amount required by s. 516.05(10) at all times for the operation of business at a licensed location or proposed location.” SB 546 takes effect October 1.
This content originally appeared in Buckley’s Infobytes blog, a collection of news and alerts covering the financial services industry. To read more or have the Infobytes weekly newsletter delivered to your inbox, please visit infobytesblog.com.