House Bill 1139

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    Florida House of Representatives - 2000                HB 1139

        By Representative Littlefield






  1                      A bill to be entitled

  2         An act relating to consumer finance loan

  3         delinquency charges; amending s. 516.031, F.S.;

  4         authorizing a delinquency charge on consumer

  5         finance loans under certain circumstances;

  6         providing an effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

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10         Section 1.  Paragraph (a) of subsection (3) of section

11  516.031, Florida Statutes, is amended to read:

12         516.031  Finance charge; maximum rates.--

13         (3)  OTHER CHARGES.--

14         (a)  In addition to the interest, delinquency, and

15  insurance charges herein provided for, no further or other

16  charges or amount whatsoever for any examination, service,

17  commission, or other thing or otherwise shall be directly or

18  indirectly charged, contracted for, or received as a condition

19  to the grant of a loan, except:

20         1.  An amount not to exceed $10 to reimburse a portion

21  of the costs for investigating the character and credit of the

22  person applying for the loan;

23         2.  An annual fee of $25 on the anniversary date of

24  each line-of-credit account;

25         3.  Charges paid for brokerage fee on a loan or line of

26  credit of more than $10,000, title insurance, and the

27  appraisal of real property offered as security when paid to a

28  third party and supported by an actual expenditure;

29         4.  Intangible personal property tax on the loan note

30  or obligation when secured by a lien on real property;

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000                HB 1139

    731-113-00






  1         5.  The documentary excise tax and lawful fees, if any,

  2  actually and necessarily paid out by the licensee to any

  3  public officer for filing, recording, or releasing in any

  4  public office any instrument securing the loan, which fees may

  5  be collected when the loan is made or at any time thereafter;

  6         6.  The premium payable for any insurance in lieu of

  7  perfecting any security interest otherwise required by the

  8  licensee in connection with the loan, if the premium does not

  9  exceed the fees which would otherwise be payable, which

10  premium may be collected when the loan is made or at any time

11  thereafter;

12         7.  Actual and reasonable attorney's fees and court

13  costs as determined by the court in which suit is filed; or

14         8.  Actual and commercially reasonable expenses of

15  repossession, storing, repairing and placing in condition for

16  sale, and selling of any property pledged as security; or.

17         9.  A delinquency charge not to exceed $10 for each

18  payment in default for a period of not less than 10 days, if

19  the charge is agreed upon, in writing, between the parties

20  before imposing the charge.

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22  Any charges, including interest, in excess of the combined

23  total of all charges authorized and permitted by this chapter

24  constitute a violation of chapter 687 governing interest and

25  usury, and the penalties of that chapter apply. In the event

26  of a bona fide error, the licensee shall refund or credit the

27  borrower with the amount of the overcharge immediately but

28  within 20 days from the discovery of such error.

29         Section 2.  This act shall take effect July 1, 2000.

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    Florida House of Representatives - 2000                HB 1139

    731-113-00






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  2                          HOUSE SUMMARY

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      Authorizes a maximum delinquency charge of $10 for
  4    consumer loan payments in default for more than 10 days,
      if the charge is agreed upon, in writing, between the
  5    parties before imposing the charge.

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