Bill Text: FL S0874 | 2019 | Regular Session | Engrossed


Bill Title: Consumer Finance Loans

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Failed) 2019-05-03 - Died in Messages [S0874 Detail]

Download: Florida-2019-S0874-Engrossed.html
       CS for CS for SB 874                             First Engrossed
       
       
       
       
       
       
       
       
       2019874e1
       
    1                        A bill to be entitled                      
    2         An act relating to consumer finance loans; creating s.
    3         516.405, F.S.; creating the Access to Responsible
    4         Credit Pilot Program within the Office of Financial
    5         Regulation; providing legislative intent; creating s.
    6         516.41, F.S.; defining terms; creating s. 516.42,
    7         F.S.; requiring a program license from the office for
    8         certain actions relating to program loans; providing
    9         licensure requirements; requiring a program licensee’s
   10         program branch offices to be licensed; providing
   11         program branch office license and license renewal
   12         requirements; providing circumstances under which the
   13         office may deny initial and renewal applications;
   14         requiring the Financial Services Commission to adopt
   15         rules; creating s. 516.43, F.S.; providing
   16         requirements for program licensees, program loans,
   17         loan repayments, loan rescissions, interest rates,
   18         program loan refinancing, receipts, disclosures and
   19         statements provided by program licensees to borrowers,
   20         origination fees, insufficient funds fees, and
   21         delinquency charges; requiring program licensees to
   22         provide certain credit education information to
   23         borrowers and to report payment performance of
   24         borrowers to a consumer reporting agency; prohibiting
   25         the office from approving a program licensee applicant
   26         before the applicant has been accepted as a data
   27         furnisher by a consumer reporting agency; providing a
   28         requirement for credit reporting; specifying program
   29         loan underwriting requirements for program licensees;
   30         prohibiting program licensees from making program
   31         loans under certain circumstances; requiring program
   32         licensees to seek certain information and
   33         documentation; prohibiting program licensees from
   34         requiring certain waivers from borrowers; providing
   35         applicability; creating s. 516.44, F.S.; requiring all
   36         arrangements between program licensees and access
   37         partners to be specified in written access partner
   38         agreements; providing requirements for such
   39         agreements; specifying access partner services that
   40         may be used by program licensees; specifying
   41         procedures for borrowers’ payment receipts or access
   42         partners’ disbursement of program loans; providing
   43         recordkeeping requirements; prohibiting specified
   44         activities by access partners; providing disclosure
   45         statement requirements; providing requirements and
   46         prohibitions relating to compensation paid to access
   47         partners; requiring program licensees to provide the
   48         office with a specified notice after contracting with
   49         access partners; defining the term “affiliated party”;
   50         requiring access partners to provide program licensees
   51         with a certain written notice within a specified time;
   52         providing that program licensees are responsible for
   53         certain acts of their access partners; requiring the
   54         commission to adopt rules; creating s. 516.45, F.S.;
   55         requiring the office to examine each program licensee;
   56         authorizing the office to waive branch office
   57         examinations under certain circumstances; limiting the
   58         scope of certain examinations and investigations;
   59         authorizing the office to take certain disciplinary
   60         action against program licensees and access partners;
   61         requiring the commission to adopt rules; creating s.
   62         516.46, F.S.; requiring program licensees to file an
   63         annual report with the office beginning on a specified
   64         date; requiring the office to post an annual report on
   65         its website by a specified date; specifying
   66         information to be contained in the reports; requiring
   67         the commission to adopt rules; providing for future
   68         repeal of the pilot program; providing an
   69         appropriation; providing an effective date.
   70          
   71  Be It Enacted by the Legislature of the State of Florida:
   72  
   73         Section 1. Section 516.405, Florida Statutes, is created to
   74  read:
   75         516.405Access to Responsible Credit Pilot Program.—
   76         (1)The Access to Responsible Credit Pilot Program is
   77  created within the Office of Financial Regulation to allow more
   78  Floridians to obtain responsible consumer finance loans in
   79  principal amounts of at least $300 but not more than $7,500.
   80         (2)The pilot program is intended to assist consumers in
   81  building their credit and to provide additional consumer
   82  protections for these loans that exceed current protections
   83  under general law.
   84         Section 2. Section 516.41, Florida Statutes, is created to
   85  read:
   86         516.41Definitions.—As used in ss. 516.405-516.46, the
   87  term:
   88         (1)“Access partner” means an entity that, at one or more
   89  physical business locations owned or rented by the entity,
   90  performs one or more of the services authorized in s. 516.44(2)
   91  on behalf of a program licensee. The term does not include a
   92  credit service organization as defined in s. 817.7001 or a loan
   93  broker as defined in s. 687.14.
   94         (2)“Consumer reporting agency” has the same meaning as the
   95  term “consumer reporting agency that compiles and maintains
   96  files on consumers on a nationwide basis” in the Fair Credit
   97  Reporting Act, 15 U.S.C. s. 1681a(p).
   98         (3)“Credit score” has the same meaning as in the Fair
   99  Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
  100         (4)“Data furnisher” has the same meaning as the term
  101  “furnisher” in 12 C.F.R. s. 1022.41(c).
  102         (5)“Pilot program” or “program” means the Access to
  103  Responsible Credit Pilot Program.
  104         (6)“Pilot program license” or “program license” means a
  105  license issued under ss. 516.405-516.46 authorizing a program
  106  licensee to make and collect program loans.
  107         (7)“Program branch office license” means a license issued
  108  under the program for each location, other than a program
  109  licensee’s or access partner’s principal place of business:
  110         (a)The address of which appears on business cards,
  111  stationery, or advertising used by the program licensee in
  112  connection with business conducted under this chapter;
  113         (b)At which the program licensee’s name, advertising or
  114  promotional materials, or signage suggests that program loans
  115  are originated, negotiated, funded, or serviced by the program
  116  licensee; or
  117         (c)At which program loans are originated, negotiated,
  118  funded, or serviced by the program licensee.
  119         (8)“Program licensee” means a person who is licensed to
  120  make and collect loans under this chapter and who is approved by
  121  the office to participate in the program.
  122         (9)“Program loan” means a consumer finance loan with a
  123  principal amount of at least $300, but not more than $7,500,
  124  originated pursuant to ss. 516.405–516.46, excluding the amount
  125  of the origination fee authorized under s. 516.43(3).
  126         (10)“Refinance program loan” means a program loan that
  127  extends additional principal to a borrower and replaces and
  128  revises an existing program loan contract with the borrower. A
  129  refinance program loan does not include an extension, a
  130  deferral, or a rewrite of the program loan.
  131         Section 3. Section 516.42, Florida Statutes, is created to
  132  read:
  133         516.42Requirements for program participation; program
  134  application requirements.—
  135         (1)A person may not advertise, offer, or make a program
  136  loan, or impose any charges or fees pursuant to s. 516.43,
  137  unless the person obtains a pilot program license from the
  138  office.
  139         (2)In order to obtain a pilot program license, a person
  140  must:
  141         (a)1.Be licensed to make and collect consumer finance
  142  loans under s. 516.05; or
  143         2.Submit the application for the license required in s.
  144  516.03 concurrently with the application for the program
  145  license. The application required by s. 516.03 must be approved
  146  and the license under that section must be issued in order to
  147  obtain the program license.
  148         (b)Be accepted as a data furnisher by a consumer reporting
  149  agency.
  150         (c) Demonstrate financial responsibility, experience,
  151  character, or general fitness, such as to command the confidence
  152  of the public and to warrant the belief that the business
  153  operated at the licensed or proposed location is lawful, honest,
  154  fair, efficient, and within the purposes of this chapter.
  155         (d)Not be subject to the issuance of a cease and desist
  156  order; the issuance of a removal order; the denial, suspension,
  157  or revocation of a license; or any other action within the
  158  authority of the office, any financial regulatory agency in this
  159  state, or any other state or federal regulatory agency that
  160  affects the ability of such person to participate in the
  161  program.
  162         (3)(a)A program applicant must file with the office a
  163  digital application in a form and manner prescribed by
  164  commission rule which contains all of the following information
  165  with respect to the applicant:
  166         1.The legal business name and any other name under which
  167  the applicant operates.
  168         2.The applicant’s main address.
  169         3.The applicant’s telephone number and e-mail address.
  170         4.The address of each program branch office.
  171         5.The name, title, address, telephone number, and e-mail
  172  address of the applicant’s contact person.
  173         6.The license number, if the applicant is licensed under
  174  s. 516.05.
  175         7.A statement as to whether the applicant intends to use
  176  the services of one or more access partners under s. 516.44.
  177         8.A statement that the applicant has been accepted as a
  178  data furnisher by a consumer reporting agency and will report to
  179  a consumer reporting agency the payment performance of each
  180  borrower on all program loans.
  181         9.The signature and certification of an authorized person
  182  of the applicant.
  183         (b)A person who desires to participate in the program but
  184  who is not licensed to make consumer finance loans pursuant to
  185  s. 516.05 must concurrently submit the following digital
  186  applications in a form and manner specified in this chapter to
  187  the office:
  188         1.An application pursuant to s. 516.03 for licensure to
  189  make consumer finance loans.
  190         2.An application for admission to the program in
  191  accordance with paragraph (a).
  192         (4)Except as otherwise provided in ss. 516.405-516.46, a
  193  program licensee is subject to all the laws and rules governing
  194  consumer finance loans under this chapter. A program license
  195  must be renewed biennially.
  196         (5)Notwithstanding s. 516.05(3), only one program license
  197  is required for a person to make program loans under ss.
  198  516.405-516.46, regardless of whether the program licensee
  199  offers program loans to prospective borrowers at its own
  200  physical business locations, through access partners, or via an
  201  electronic access point through which a prospective borrower may
  202  directly access the website of the program licensee.
  203         (6)Each branch office of a program licensee must be
  204  licensed under this section.
  205         (7)The office shall issue a program branch office license
  206  to a program licensee after the office determines that the
  207  program licensee has submitted a completed electronic
  208  application for a program branch office license in a form
  209  prescribed by commission rule. The program branch office license
  210  must be issued in the name of the program licensee that
  211  maintains the branch office. An application is considered
  212  received for purposes of s. 120.60 upon receipt of a completed
  213  application form. The application for a program branch office
  214  license must contain the following information:
  215         (a)The legal business name and any other name under which
  216  the applicant operates.
  217         (b)The applicant’s main address.
  218         (c)The applicant’s telephone number and e-mail address.
  219         (d)The address of each program branch office.
  220         (e)The name, title, address, telephone number, and e-mail
  221  address of the applicant’s contact person.
  222         (f)The applicant’s license number, if the applicant is
  223  licensed under this chapter.
  224         (g)The signature and certification of an authorized person
  225  of the applicant.
  226         (8)Except as provided in subsection (9), a program branch
  227  office license must be renewed biennially at the time of
  228  renewing the program license.
  229         (9)Notwithstanding subsection (7), the office may deny an
  230  initial or renewal application for a program license or program
  231  branch office license if the applicant or any person with power
  232  to direct the management or policies of the applicant’s
  233  business:
  234         (a) Fails to demonstrate financial responsibility,
  235  experience, character, or general fitness, such as to command
  236  the confidence of the public and to warrant the belief that the
  237  business operated at the licensed or proposed location is
  238  lawful, honest, fair, efficient, and within the purposes of this
  239  chapter.
  240         (b) Pled nolo contendere to, or was convicted or found
  241  guilty of, a crime involving fraud, dishonest dealing, or any
  242  act of moral turpitude, regardless of whether adjudication was
  243  withheld.
  244         (c)Is subject to the issuance of a cease and desist order;
  245  the issuance of a removal order; the denial, suspension, or
  246  revocation of a license; or any other action within the
  247  authority of the office, any financial regulatory agency in this
  248  state, or any other state or federal regulatory agency that
  249  affects the applicant’s ability to participate in the program.
  250         (10)The commission shall adopt rules to implement this
  251  section.
  252         Section 4. Section 516.43, Florida Statutes, is created to
  253  read:
  254         516.43Requirements for program loans.—
  255         (1)REQUIREMENTS.—A program licensee shall comply with each
  256  of the following requirements in making program loans:
  257         (a)A program loan must be unsecured.
  258         (b)A program loan must have:
  259         1.A term of at least 120 days, but not more than 36
  260  months, for a loan with a principal balance upon origination of
  261  at least $300, but not more than $3,000.
  262         2.A term of at least 12 months, but not more than 60
  263  months, for a loan with a principal balance upon origination of
  264  more than $3,000.
  265         (c)A borrower may not receive a program loan for a
  266  principal balance exceeding $5,000 unless:
  267         1. The borrower has paid in full the outstanding principal,
  268  interest, and fees on a previous program loan;
  269         2. The borrower’s credit score increased from the time of
  270  application for the borrower’s first consummated program loan;
  271  and
  272         3. The borrower was never delinquent for more than 7 days
  273  on a previous program loan.
  274         (d)A program loan may not impose a prepayment penalty. A
  275  program loan must be repayable by the borrower in substantially
  276  equal, periodic installments, except that the final payment may
  277  be less than the amount of the prior installments. Installments
  278  must be due either every 2 weeks, semimonthly, or monthly.
  279         (e)A program loan must include a borrower’s right to
  280  rescind the program loan by notifying the program licensee of
  281  the borrower’s intent to rescind the program loan and returning
  282  the principal advanced by the end of the business day after the
  283  day the program loan is consummated.
  284         (f)Notwithstanding s. 516.031, the maximum annual interest
  285  rate charged on a program loan to the borrower, which must be
  286  fixed for the duration of the program loan, is 36 percent on
  287  that portion of the unpaid principal balance up to and including
  288  $3,000; 30 percent on that portion of the unpaid principal
  289  balance exceeding $3,000 and up to and including $4,000; and 24
  290  percent on that portion of the unpaid principal balance
  291  exceeding $4,000 and up to and including $7,500. The original
  292  principal amount of the program loan is equal to the amount
  293  financed as defined by the federal Truth in Lending Act and
  294  Regulation Z of the Board of Governors of the Federal Reserve
  295  System. In determining compliance with the maximum annual
  296  interest rates in this paragraph, the computations used must be
  297  simple interest through the application of a daily periodic rate
  298  to the actual unpaid principal balance each day and may not be
  299  added-on interest or any other computations.
  300         (g)If two or more interest rates are applied to the
  301  principal amount of a program loan, the program licensee may
  302  charge, contract for, and receive interest at that single annual
  303  percentage rate that, if applied according to the actuarial
  304  method to each of the scheduled periodic balances of principal,
  305  would produce at maturity the same total amount of interest as
  306  would result from the application of the two or more rates
  307  otherwise permitted, based upon the assumption that all payments
  308  are made as agreed.
  309         (h)The program licensee shall reduce the interest rates
  310  specified in paragraph (f) on each subsequent program loan to
  311  the same borrower by a minimum of 1 percent, up to a maximum of
  312  6 percent, if all of the following conditions are met:
  313         1.The subsequent program loan is originated within 180
  314  days after the prior program loan is fully repaid.
  315         2.The borrower was never more than 15 days delinquent on
  316  the prior program loan.
  317         3.The prior program loan was outstanding for at least one
  318  half of its original term before its repayment.
  319         (i)The program licensee may not induce or permit any
  320  person to become obligated to the program licensee, directly or
  321  contingently, or both, under more than one program loan at the
  322  same time with the program licensee.
  323         (j)The program licensee may not refinance a program loan
  324  unless all of the following conditions are met at the time the
  325  borrower submits an application to refinance:
  326         1.The principal amount payable may not include more than
  327  60 days’ unpaid interest accrued on the previous program loan
  328  pursuant to s. 516.031(5).
  329         2.For a program loan with an original term up to and
  330  including 25 months, the borrower has repaid at least 60 percent
  331  of the outstanding principal remaining on his or her existing
  332  program loan.
  333         3.For a program loan with an original term of more than 25
  334  months, but not more than 60 months, the borrower has made
  335  current payments for at least 9 months on his or her existing
  336  program loan.
  337         4.The borrower is current on payments for his or her
  338  existing program loan.
  339         5.The program licensee must underwrite the new program
  340  loan in accordance with subsection (7).
  341         (k)In lieu of the provisions of s. 687.08, the program
  342  licensee or, if applicable, its approved access partner shall
  343  make available to the borrower by electronic or physical means a
  344  plain and complete receipt of payment at the time that a payment
  345  is made by the borrower. For audit purposes, the program
  346  licensee must maintain an electronic record for each receipt
  347  made available to a borrower, which must include a copy of the
  348  receipt and the date and time that the receipt was generated.
  349  Each receipt made available to the borrower must show all of the
  350  following:
  351         1.The name of the borrower.
  352         2.The name of the access partner, if applicable.
  353         3.The total payment amount received.
  354         4.The date of payment.
  355         5.The program loan balance before and after application of
  356  the payment.
  357         6.The amount of the payment that was applied to the
  358  principal, interest, and fees.
  359         7.The type of payment made by the borrower.
  360         8.The following statement, prominently displayed in a type
  361  size equal to or larger than the type size used to display the
  362  other items on the receipt: “If you have any questions about
  363  your loan now or in the future, you should direct those
  364  questions to ...(name of program licensee)... by ...(at least
  365  two different ways in which a borrower may contact the program
  366  licensee)....”
  367         (2)WRITTEN DISCLOSURES AND STATEMENTS.—
  368         (a)Notwithstanding s. 516.15(1), the loan contract and all
  369  written disclosures and statements may be provided by a program
  370  licensee to a borrower in English or in the language in which
  371  the loan is negotiated.
  372         (b)The program licensee shall provide to a borrower all
  373  the statements required of licensees under s. 516.15.
  374         (3)ORIGINATION FEES.—Notwithstanding s. 516.031, a program
  375  licensee may:
  376         (a)Contract for and receive an origination fee from a
  377  borrower on a program loan. The program licensee may either
  378  deduct the origination fee from the principal amount of the loan
  379  disbursed to the borrower or capitalize the origination fee into
  380  the principal balance of the loan. The origination fee is fully
  381  earned and nonrefundable immediately upon the making of the
  382  program loan and may not exceed the lesser of 6 percent of the
  383  principal amount of the program loan made to the borrower,
  384  exclusive of the origination fee, or $90.
  385         (b)Not charge a borrower an origination fee more than
  386  twice in any 12-month period.
  387         (4)INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
  388  program licensee may:
  389         (a)Notwithstanding s. 516.031, require payment from a
  390  borrower of no more than $20 for fees incurred by the program
  391  licensee from a dishonored payment due to insufficient funds of
  392  the borrower.
  393         (b)Notwithstanding s. 516.031(3)(a)9., contract for and
  394  receive a delinquency charge for each payment in default for at
  395  least 7 days if the charge is agreed upon, in writing, between
  396  the program licensee and the borrower before it is imposed.
  397  Delinquency charges may be imposed as follows:
  398         1. For payments due monthly, the delinquency charge for a
  399  payment in default may not exceed $15.
  400         2. For payments due semimonthly, the delinquency charge for
  401  a payment in default may not exceed $7.50.
  402         3. For payments due every 2 weeks, the delinquency charge
  403  for a payment in default may not exceed $7.50 if two payments
  404  are due within the same calendar month, and may not exceed $5 if
  405  three payments are due within the same calendar month.
  406  
  407  The program licensee, or any wholly owned subsidiary of the
  408  program licensee, may not sell or assign an unpaid debt to an
  409  independent third party for collection purposes unless the debt
  410  has been delinquent for at least 30 days.
  411         (5)CREDIT EDUCATION.—Before disbursement of program loan
  412  proceeds to the borrower, the program licensee must:
  413         (a)Direct the borrower to the consumer credit counseling
  414  services offered by an independent third party; or
  415         (b)Provide a credit education program or seminar to the
  416  borrower. The borrower is not required to participate in such
  417  education program or seminar. A credit education program or
  418  seminar offered pursuant to this paragraph must be provided at
  419  no cost to the borrower.
  420         (6)CREDIT REPORTING.—
  421         (a)The program licensee shall report each borrower’s
  422  payment performance to at least one consumer reporting agency.
  423         (b)The office may not approve an applicant for the program
  424  license before the applicant has been accepted as a data
  425  furnisher by a consumer reporting agency.
  426         (c)The program licensee shall provide each borrower with
  427  the name or names of the consumer reporting agency or agencies
  428  to which it will report the borrower’s payment history.
  429         (7)PROGRAM LOAN UNDERWRITING.—
  430         (a)The program licensee must underwrite each program loan
  431  to determine a borrower’s ability and willingness to repay the
  432  program loan pursuant to the program loan terms. The program
  433  licensee may not make a program loan if it determines that the
  434  borrower’s total monthly debt service payments at the time of
  435  origination, including the program loan for which the borrower
  436  is being considered and all outstanding forms of credit that can
  437  be independently verified by the program licensee, exceed 50
  438  percent of the borrower’s gross monthly income for a loan of not
  439  more than $3,000, or exceed 36 percent of the borrower’s gross
  440  monthly income for a loan of more than $3,000.
  441         (b)1.The program licensee must seek information and
  442  documentation pertaining to all of a borrower’s outstanding debt
  443  obligations during the loan application and underwriting
  444  process, including loans that are self-reported by the borrower
  445  but not available through independent verification. The program
  446  licensee must verify such information using a credit report from
  447  at least one consumer reporting agency or through other
  448  available electronic debt verification services that provide
  449  reliable evidence of a borrower’s outstanding debt obligations.
  450         2.The program licensee is not required to consider loans
  451  made to a borrower by friends or family in determining the
  452  borrower’s debt-to-income ratio.
  453         (c)The program licensee must verify the borrower’s income
  454  to determine the debt-to-income ratio using information from:
  455         1.Electronic means or services that provide reliable
  456  evidence of the borrower’s actual income; or
  457         2.The Internal Revenue Service Form W-2, tax returns,
  458  payroll receipts, bank statements, or other third-party
  459  documents that provide reasonably reliable evidence of the
  460  borrower’s actual income.
  461         (8)WAIVERS.—
  462         (a)A program licensee may not require, as a condition of
  463  providing the program loan, that the borrower:
  464         1.Waive any right, penalty, remedy, forum, or procedure
  465  provided for in any law applicable to the program loan,
  466  including the right to file and pursue a civil action or file a
  467  complaint with or otherwise communicate with the office, a
  468  court, or any other governmental entity.
  469         2.Agree to the application of laws other than those of
  470  this state.
  471         3.Agree to resolve disputes in a jurisdiction outside of
  472  this state.
  473         (b)A waiver that is required as a condition of doing
  474  business with the program licensee is presumed involuntary,
  475  unconscionable, against public policy, and unenforceable.
  476         (c)A program licensee may not refuse to do business with
  477  or discriminate against a borrower or an applicant on the basis
  478  of the borrower’s or applicant’s refusal to waive any right,
  479  penalty, remedy, forum, or procedure, including the right to
  480  file and pursue a civil action or complaint with, or otherwise
  481  communicate with, the office, a court, or any other governmental
  482  entity. The exercise of a person’s right to refuse to waive any
  483  right, penalty, remedy, forum, or procedure, including a
  484  rejection of a contract requiring a waiver, does not affect any
  485  otherwise legal terms of a contract or an agreement.
  486         (d)This subsection does not apply to any agreement to
  487  waive any right, penalty, remedy, forum, or procedure, including
  488  any agreement to arbitrate a claim or dispute after a claim or
  489  dispute has arisen. This subsection does not affect the
  490  enforceability or validity of any other provision of the
  491  contract.
  492         Section 5. Section 516.44, Florida Statutes, is created to
  493  read:
  494         516.44Access partners.—
  495         (1)ACCESS PARTNER AGREEMENT.—All arrangements between a
  496  program licensee and an access partner must be specified in a
  497  written access partner agreement between the parties. The
  498  agreement must contain the following provisions:
  499         (a)The access partner agrees to comply with this section
  500  and all rules adopted under this section regarding the
  501  activities of access partners.
  502         (b)The office has access to the access partner’s books and
  503  records pertaining to the access partner’s operations under the
  504  agreement with the program licensee in accordance with s.
  505  516.45(3) and may examine the access partner pursuant to s.
  506  516.45.
  507         (2)AUTHORIZED SERVICES.—A program licensee may use the
  508  services of one or more access partners as provided in this
  509  section. An access partner may perform one or more of the
  510  following services from its physical business location for the
  511  program licensee:
  512         (a)Distributing, circulating, using, or publishing printed
  513  brochures, flyers, fact sheets, or other written materials
  514  relating to program loans that the program licensee may make or
  515  negotiate. The written materials must be reviewed and approved
  516  in writing by the program licensee before being distributed,
  517  circulated, used, or published.
  518         (b)Providing written factual information about program
  519  loan terms, conditions, or qualification requirements to a
  520  prospective borrower which has been prepared by the program
  521  licensee or reviewed and approved in writing by the program
  522  licensee. An access partner may discuss the information with a
  523  prospective borrower in general terms.
  524         (c)Notifying a prospective borrower of the information
  525  needed in order to complete a program loan application.
  526         (d)Entering information provided by the prospective
  527  borrower on a preprinted or an electronic application form or in
  528  a preformatted computer database.
  529         (e)Assembling credit applications and other materials
  530  obtained in the course of a credit application transaction for
  531  submission to the program licensee.
  532         (f)Contacting the program licensee to determine the status
  533  of a program loan application.
  534         (g)Communicating a response that is returned by the
  535  program licensee’s automated underwriting system to a borrower
  536  or a prospective borrower.
  537         (h)Obtaining a borrower’s signature on documents prepared
  538  by the program licensee and delivering final copies of the
  539  documents to the borrower.
  540         (i)Disbursing program loan proceeds to a borrower if this
  541  method of disbursement is acceptable to the borrower, subject to
  542  the requirements of subsection (3). A loan disbursement made by
  543  an access partner under this paragraph is deemed to be made by
  544  the program licensee on the date that the funds are disbursed or
  545  otherwise made available by the access partner to the borrower.
  546         (j)Receiving a program loan payment from the borrower if
  547  this method of payment is acceptable to the borrower, subject to
  548  the requirements of subsection (3).
  549         (k)Operating an electronic access point through which a
  550  prospective borrower may directly access the website of the
  551  program licensee to apply for a program loan.
  552         (3)RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  553         (a)A loan payment made by a borrower to an access partner
  554  under paragraph (2)(j) must be applied to the borrower’s program
  555  loan and deemed received by the program licensee as of the date
  556  on which the payment is received by the access partner.
  557         (b)An access partner that receives a loan payment from a
  558  borrower must deliver or cause to be delivered to the borrower a
  559  plain and complete receipt showing all of the information
  560  specified in s. 516.43(1)(k) at the time that the payment is
  561  made by the borrower.
  562         (c)A borrower who submits a loan payment to an access
  563  partner under this subsection is not liable for a failure or
  564  delay by the access partner in transmitting the payment to the
  565  program licensee.
  566         (d)An access partner that disburses or receives loan
  567  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  568  maintain records of all disbursements made and loan payments
  569  received for at least 2 years.
  570         (4)PROHIBITED ACTIVITIES.—An access partner may not:
  571         (a)Provide counseling or advice to a borrower or
  572  prospective borrower with respect to any loan term.
  573         (b)Provide loan-related marketing material that has not
  574  previously been approved by the program licensee to a borrower
  575  or a prospective borrower.
  576         (c)Negotiate a loan term between a program licensee and a
  577  prospective borrower.
  578         (d)Offer information pertaining to a single prospective
  579  borrower to more than one program licensee. However, if a
  580  program licensee has declined to offer a program loan to a
  581  prospective borrower and has so notified the prospective
  582  borrower in writing, the access partner may then offer
  583  information pertaining to that borrower to another program
  584  licensee with whom it has an access partner agreement.
  585         (e)Except for the purpose of assisting a borrower in
  586  obtaining a refinance program loan, offer information pertaining
  587  to a prospective borrower to any program licensee if the
  588  prospective borrower has an outstanding program loan.
  589         (f)Charge a borrower any fee for a program loan.
  590         (g)Perform in-person marketing of the program at a public
  591  food service establishment as defined in s. 509.013(5), or at a
  592  place where alcoholic beverages, as defined in s. 561.01(4), are
  593  served for consumption.
  594         (h)Perform in-person marketing of the program at a
  595  location at which the primary purpose is the sale of liquor, as
  596  defined in s. 565.01.
  597         (5)DISCLOSURE STATEMENTS.—
  598         (a)At the time that the access partner receives or
  599  processes an application for a program loan, the access partner
  600  shall provide the following statement to the applicant on behalf
  601  of the program licensee, in at least 10-point type, and shall
  602  request that the applicant acknowledge receipt of the statement
  603  in writing:
  604  
  605         Your loan application has been referred to us by
  606         ...(name of access partner).... We may pay a fee to
  607         ...(name of access partner)... for the successful
  608         referral of your loan application. If you are approved
  609         for the loan, ...(name of program licensee)... will
  610         become your lender. If you have any questions about
  611         your loan, now or in the future, you should direct
  612         those questions to ...(name of program licensee)... by
  613         ...(insert at least two different ways in which a
  614         borrower may contact the program licensee).... If you
  615         wish to report a complaint about ...(name of access
  616         partner)... or ...(name of program licensee)...
  617         regarding this loan transaction, you may contact the
  618         Division of Consumer Finance of the Office of
  619         Financial Regulation at 850-487-9687 or
  620         http://www.flofr.com.
  621  
  622         (b)If the loan applicant has questions about the program
  623  loan which the access partner is not permitted to answer, the
  624  access partner must make a good faith effort to assist the
  625  applicant in making direct contact with the program licensee
  626  before the program loan is consummated.
  627         (6)COMPENSATION.—
  628         (a)The program licensee may compensate an access partner
  629  in accordance with a written agreement and a compensation
  630  schedule that is agreed to by the program licensee and the
  631  access partner, subject to the requirements in paragraph (b).
  632         (b)The compensation of an access partner by a program
  633  licensee is subject to the following requirements:
  634         1.Compensation may not be paid to an access partner in
  635  connection with a loan application unless the program loan is
  636  consummated.
  637         2.The access partner’s location for services and other
  638  information required in subsection (7) must be reported to the
  639  office.
  640         3. Compensation paid by the program licensee to the access
  641  partner may not exceed $65 per program loan, on average, plus $2
  642  per payment received by the access partner on behalf of the
  643  program licensee for the duration of the program loan, and may
  644  not be charged directly or indirectly to the borrower.
  645         (7)NOTICE TO OFFICE.—A program licensee that uses the
  646  service of an access partner must notify the office, in a form
  647  and manner prescribed by commission rule, within 15 days after
  648  entering into a contract with an access partner regarding all of
  649  the following:
  650         (a)The name, business address, and licensing details of
  651  the access partner and all locations at which the access partner
  652  will perform services under this section.
  653         (b)The name and contact information for an employee of the
  654  access partner who is knowledgeable about, and has the authority
  655  to execute, the access partner agreement.
  656         (c)The name and contact information of one or more
  657  employees of the access partner who are responsible for that
  658  access partner’s referring activities on behalf of the program
  659  licensee.
  660         (d)A statement by the program licensee that it has
  661  conducted due diligence with respect to the access partner and
  662  has confirmed that none of the following apply:
  663         1.The filing of a petition under the United States
  664  Bankruptcy Code for bankruptcy or reorganization by the access
  665  partner.
  666         2.The commencement of an administrative or a judicial
  667  license suspension or revocation proceeding, or the denial of a
  668  license request or renewal, by any state, the District of
  669  Columbia, any United States territory, or any foreign country in
  670  which the access partner operates, plans to operate, or is
  671  licensed to operate.
  672         3.A felony indictment involving the access partner or an
  673  affiliated party.
  674         4.The felony conviction, guilty plea, or plea of nolo
  675  contendere, regardless of adjudication, of the access partner or
  676  an affiliated party.
  677         5.Any suspected criminal act perpetrated in this state
  678  relating to activities regulated under this chapter by the
  679  access partner.
  680         6.Notification by a law enforcement or prosecutorial
  681  agency that the access partner is under criminal investigation,
  682  including, but not limited to, subpoenas to produce records or
  683  testimony and warrants issued by a court of competent
  684  jurisdiction which authorize the search and seizure of any
  685  records relating to a business activity regulated under this
  686  chapter.
  687  
  688  As used in this paragraph, the term “affiliated party” means a
  689  director, officer, control person, employee, or foreign
  690  affiliate of an access partner; or a person who has a
  691  controlling interest in an access partner.
  692         (e)Any other information requested by the office, subject
  693  to the limitations specified in s. 516.45(3).
  694         (8)NOTICE OF CHANGES.—An access partner must provide the
  695  program licensee with a written notice sent by registered mail
  696  within 30 days after any change is made to the information
  697  specified in paragraphs (7)(a)-(c) and within 30 days after the
  698  occurrence or knowledge of any of the events specified in
  699  paragraph (7)(d).
  700         (9)RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
  701  licensee is responsible for any act of its access partner if
  702  such act is a violation of this chapter.
  703         (10)RULEMAKING.—The commission shall adopt rules to
  704  implement this section.
  705         Section 6. Section 516.45, Florida Statutes, is created to
  706  read:
  707         516.45Examinations, investigations, and grounds for
  708  disciplinary action.—
  709         (1)Notwithstanding any other law, the office shall examine
  710  each program licensee that is accepted into the program in
  711  accordance with this chapter.
  712         (2)Notwithstanding subsection (1), the office may waive
  713  one or more branch office examinations if the office finds that
  714  such examinations are not necessary for the protection of the
  715  public due to the centralized operations of the program licensee
  716  or other factors acceptable to the office.
  717         (3)The scope of any investigation or examination of a
  718  program licensee or access partner must be limited to those
  719  books, accounts, records, documents, materials, and matters
  720  reasonably necessary to determine compliance with this chapter.
  721         (4)A program licensee who violates any applicable
  722  provision of this chapter is subject to disciplinary action
  723  pursuant to s. 516.07(2). Any such disciplinary action is
  724  subject to s. 120.60. The program licensee is also subject to
  725  disciplinary action for a violation of s. 516.44 committed by
  726  any of its access partners.
  727         (5)The office may take any of the following actions
  728  against an access partner who violates s. 516.44:
  729         (a)Bar the access partner from performing services under
  730  this chapter.
  731         (b)Bar the access partner from performing services at one
  732  or more of its specific locations.
  733         (c) Impose an administrative fine on the access partner of
  734  up to $5,000 in a calendar year.
  735         (6)The commission shall adopt rules to implement this
  736  section.
  737         Section 7. Section 516.46, Florida Statutes, is created to
  738  read:
  739         516.46Annual reports by program licensees and the office.—
  740         (1)By March 15, 2021, and each year thereafter, a program
  741  licensee shall file a report with the office on a form and in a
  742  manner prescribed by commission rule. The report must include
  743  each of the items specified in subsection (2) for the preceding
  744  year using aggregated or anonymized data without reference to
  745  any borrower’s nonpublic personal information or any program
  746  licensee’s or access partner’s proprietary or trade secret
  747  information.
  748         (2)By January 1, 2022, and each year thereafter, the
  749  office shall post a report on its website summarizing the use of
  750  the program based on the information contained in the reports
  751  filed in the preceding year by program licensees under
  752  subsection (1). The office’s report must publish the information
  753  in the aggregate so as not to identify data by any specific
  754  program licensee. The report must specify the period to which
  755  the report corresponds and must include, but is not limited to,
  756  the following for that period:
  757         (a)The number of applicants approved for a program license
  758  by the office.
  759         (b)The number of program loan applications received by
  760  program licensees, the number of program loans made under the
  761  program, the total amount loaned, the distribution of loan
  762  lengths upon origination, and the distribution of interest rates
  763  and principal amounts upon origination among those program
  764  loans.
  765         (c)The number of borrowers who obtained more than one
  766  program loan and the distribution of the number of program loans
  767  per borrower.
  768         (d)Of those borrowers who obtained more than one program
  769  loan and had a credit score by the time of their subsequent
  770  loan, the percentage of those borrowers whose credit scores
  771  increased between successive loans, based on information from at
  772  least one major credit bureau, and the average size of the
  773  increase. In each case, the report must include the name of the
  774  credit score, such as FICO or VantageScore, which the program
  775  licensee is required to disclose.
  776         (e)The income distribution of borrowers upon program loan
  777  origination, including the number of borrowers who obtained at
  778  least one program loan and who resided in a low-income or
  779  moderate-income census tract at the time of their loan
  780  applications.
  781         (f)The number of borrowers who obtained program loans for
  782  the following purposes, based on the borrowers’ responses at the
  783  time of their loan applications indicating the primary purpose
  784  for which the program loans were obtained:
  785         1.To pay medical expenses.
  786         2.To pay for vehicle repair or a vehicle purchase.
  787         3.To pay bills.
  788         4.To consolidate debt.
  789         5.To build or repair credit history.
  790         6.To finance a small business.
  791         7.To pay other expenses.
  792         (g)The number of borrowers who self-report that they had a
  793  bank account at the time of their loan application and the
  794  number of borrowers who self-report that they did not have a
  795  bank account at the time of their loan application.
  796         (h)For refinance program loans:
  797         1.The number and percentage of borrowers who applied for a
  798  refinance program loan.
  799         2.Of those borrowers who applied for a refinance program
  800  loan, the number and percentage of borrowers who obtained a
  801  refinance program loan.
  802         (i)The performance of program loans as reflected by all of
  803  the following:
  804         1.The number and percentage of borrowers who experienced
  805  at least one delinquency lasting between 7 and 29 days and the
  806  distribution of principal loan amounts corresponding to those
  807  delinquencies.
  808         2.The number and percentage of borrowers who experienced
  809  at least one delinquency lasting between 30 and 59 days and the
  810  distribution of principal loan amounts corresponding to those
  811  delinquencies.
  812         3.The number and percentage of borrowers who experienced
  813  at least one delinquency lasting 60 days or more and the
  814  distribution of principal loan amounts corresponding to those
  815  delinquencies.
  816         (3)The commission shall adopt rules to implement this
  817  section.
  818         Section 8. Sections 516.405-516.46, Florida Statutes, are
  819  repealed on July 1, 2029, unless reenacted or superseded by
  820  another law enacted by the Legislature before that date.
  821         Section 9. For the 2019-2020 fiscal year, the sum of
  822  $407,520 in nonrecurring funds from the Administrative Trust
  823  Fund is appropriated to the Office of Financial Regulation for
  824  the purpose of implementing this act.
  825         Section 10. This act shall take effect January 1, 2020.

feedback