CS/HB 275

1	A bill to be entitled
2	An act relating to consumer finance charges; amending
3	s. 516.031, F.S.; increasing the proportionate loan
4	amounts that are subject to descending maximum rates
5	of interest; increasing the maximum delinquency charge
6	that may be imposed for each loan payment in default
7	for not less than a specified time; revising the
8	maximum amount that a lender may impose as a service
9	charge on a borrower who gives the lender a bad check
10	in full or partial payment of a loan; reenacting and
11	amending s. 516.19, F.S., relating to penalties, for
12	the purpose of incorporating the amendment made to s.
13	516.031, F.S., in a reference thereto; providing
14	penalties; providing application; providing an
15	effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Subsections (1) and (3) of section 516.031,
20	Florida Statutes, are amended to read:
21	516.031  Finance charge; maximum rates.-
22	(1)  INTEREST RATES.-Every licensee may lend any sum of
23	money not exceeding $25,000. A licensee may not take a security
24	interest secured by land on any loan less than $1,000. The
25	licensee may charge, contract for, and receive thereon interest
26	charges as provided and authorized by this section. The maximum
27	interest rate shall be 30 percent per annum, computed on the
28	first $3,000 $2,000 of the principal amount as computed from
29	time to time; 24 percent per annum on that part of the principal
30	amount as computed from time to time exceeding $3,000 $2,000 and
31	not exceeding $4,000 $3,000; and 18 percent per annum on that
32	part of the principal amount as computed from time to time
33	exceeding $4,000 $3,000 and not exceeding $25,000. The original
34	principal amount as used in this section shall be the same
35	amount as the amount financed as defined by the federal Truth in
36	Lending Act and Regulation Z of the Board of Governors of the
37	Federal Reserve System. In determining compliance with the
38	statutory maximum interest and finance charges set forth herein,
39	the computations utilized shall be simple interest and not add-
40	on interest or any other computations. When two or more interest
41	rates are to be applied to the principal amount of a loan, the
42	licensee may charge, contract for, and receive interest at that
43	single annual percentage rate which if applied according to the
44	actuarial method to each of the scheduled periodic balances of
45	principal would produce at maturity the same total amount of
46	interest as would result from the application of the two or more
47	rates otherwise permitted, based upon the assumption that all
48	payments are made as agreed.
49	(3)  OTHER CHARGES.-
50	(a)  In addition to the interest, delinquency, and
51	insurance charges herein provided for, no further or other
52	charges or amount whatsoever for any examination, service,
53	commission, or other thing or otherwise shall be directly or
54	indirectly charged, contracted for, or received as a condition
55	to the grant of a loan, except:
56	1.  An amount not to exceed $25 to reimburse a portion of
57	the costs for investigating the character and credit of the
58	person applying for the loan;
59	2.  An annual fee of $25 on the anniversary date of each
60	line-of-credit account;
61	3.  Charges paid for brokerage fee on a loan or line of
62	credit of more than $10,000, title insurance, and the appraisal
63	of real property offered as security when paid to a third party
64	and supported by an actual expenditure;
65	4.  Intangible personal property tax on the loan note or
66	obligation when secured by a lien on real property;
67	5.  The documentary excise tax and lawful fees, if any,
68	actually and necessarily paid out by the licensee to any public
69	officer for filing, recording, or releasing in any public office
70	any instrument securing the loan, which fees may be collected
71	when the loan is made or at any time thereafter;
72	6.  The premium payable for any insurance in lieu of
73	perfecting any security interest otherwise required by the
74	licensee in connection with the loan, if the premium does not
75	exceed the fees which would otherwise be payable, which premium
76	may be collected when the loan is made or at any time
77	thereafter;
78	7.  Actual and reasonable attorney's fees and court costs
79	as determined by the court in which suit is filed;
80	8.  Actual and commercially reasonable expenses of
81	repossession, storing, repairing and placing in condition for
82	sale, and selling of any property pledged as security; or
83	9.  A delinquency charge not to exceed $15 $10 for each
84	payment in default for a period of not less than 10 days, if the
85	charge is agreed upon, in writing, between the parties before
86	imposing the charge.
87
88	Any charges, including interest, in excess of the combined total
89	of all charges authorized and permitted by this chapter
90	constitute a violation of chapter 687 governing interest and
91	usury, and the penalties of that chapter apply. In the event of
92	a bona fide error, the licensee shall refund or credit the
93	borrower with the amount of the overcharge immediately but
94	within 20 days from the discovery of such error.
95	(b)  Notwithstanding the provisions of paragraph (a), any
96	lender of money who receives a check, draft, negotiable order of
97	withdrawal, or like instrument drawn on a bank or other
98	depository institution, which instrument is given by a borrower
99	as full or partial repayment of a loan, may, if such instrument
100	is not paid or is dishonored by such institution, make and
101	collect from the borrower a bad check charge of not greater than
102	the maximum worthless check service charge permissible under s.
103	68.065 more than the greater of $20 or an amount equal to the
104	actual charge made to the lender by the depository institution
105	for the return of the unpaid or dishonored instrument.
106	Section 2.  For the purpose of incorporating the amendment
107	made by this act to section 516.031, Florida Statutes, in a
108	reference thereto, section 516.19, Florida Statutes, is
109	reenacted and amended to read:
110	516.19  Penalties.-Any person who violates any of the
111	provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(6),
112	or s. 516.07(1)(e) commits is guilty of a misdemeanor of the
113	first degree, punishable as provided in s. 775.082 or s.
114	775.083.
115	Section 3.  This act shall take effect July 1, 2012, and
116	shall apply to all consumer finance loans entered into on or
117	after that date.

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