Bill Text: FL S1524 | 2016 | Regular Session | Introduced

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Bill Title: Deferred Presentment Transactions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-03-11 - Died in Banking and Insurance [S1524 Detail]

Download: Florida-2016-S1524-Introduced.html

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       Florida Senate - 2016                                    SB 1524
       
       
        
       By Senator Bullard
       
       39-01583-16                                           20161524__
    1                        A bill to be entitled                      
    2         An act relating to deferred presentment transactions;
    3         amending s. 560.404, F.S.; revising the maximum
    4         interest, fees, or other charges that may be charged,
    5         collected, or received directly or indirectly by a
    6         deferred presentment provider; prohibiting a person
    7         from engaging in any device or subterfuge, including
    8         specified acts, to evade certain requirements;
    9         specifying that deferred presentment transactions that
   10         do not comply with certain requirements are void;
   11         specifying that a person who charges, collects, or
   12         receives any interest, fees, or other charges relating
   13         to such a transaction or in excess of the amount
   14         allowed commits certain violations; providing a
   15         penalty; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Subsection (6) of section 560.404, Florida
   20  Statutes, is amended, and subsections (25), (26), and (27) are
   21  added to that section, to read:
   22         560.404 Requirements for deferred presentment
   23  transactions.—
   24         (6) A deferred presentment provider or its affiliate may
   25  not directly or indirectly charge, collect, or receive interest,
   26  fees, or other charges exceeding 30 percent per annum of the
   27  currency or payment instrument provided, inclusive of ancillary
   28  products or services incident to or included in the deferred
   29  presentment transaction that exceed 10 percent of the currency
   30  or payment instrument provided. However, a verification fee may
   31  be charged as provided in s. 560.309(8). The 10-percent fee may
   32  not be applied to the verification fee. A deferred presentment
   33  provider may charge, collect, or receive only the interest,
   34  those fees, and other charges specifically authorized in this
   35  section.
   36         (25) A person may not engage in any device or subterfuge to
   37  evade the requirements of this part, including:
   38         (a) Offering or arranging a loan or assisting a drawer in
   39  obtaining a loan on terms that would be prohibited under this
   40  part;
   41         (b) Making loans disguised as personal property sales and
   42  leaseback transactions or long-term loans; or
   43         (c) Disguising loan proceeds as cash rebates under the
   44  pretext of an installment sale of goods or services.
   45         (26) A deferred presentment transaction that does not
   46  comply with the requirements of this chapter is void. A person
   47  who directly or indirectly charges, collects, or receives any
   48  interest, fees, or other charges relating to such a transaction
   49  is in violation of this chapter.
   50         (27) A person who directly or indirectly charges, collects,
   51  or receives as part of a deferred presentment transaction any
   52  interest, fees, or other charges in excess of the amount allowed
   53  by this section is in violation of chapter 687 and is subject to
   54  the penalties of that chapter.
   55         Section 2. This act shall take effect July 1, 2016.