Florida Senate - 2019 SB 874
By Senator Rouson
19-01218A-19 2019874__
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.; providing definitions; creating s.
7 516.42, F.S.; requiring persons to obtain a program
8 license from the office before making program loans;
9 providing licensure requirements; requiring a program
10 licensee’s program branch offices to be licensed;
11 providing program branch office license and license
12 renewal requirements; providing circumstances under
13 which the office may deny initial and renewal
14 applications; requiring the Financial Services
15 Commission to adopt rules; creating s. 516.43, F.S.;
16 providing requirements for program licensees, program
17 loans, interest rates, program loan refinancing,
18 receipts, disclosures and statements provided by
19 program licensees to borrowers, origination fees,
20 insufficient funds fees, and delinquency charges;
21 requiring program licensees to provide certain credit
22 education information to borrowers and to report
23 payment performance of borrowers to a consumer
24 reporting agency; prohibiting the office from
25 approving a program licensee applicant before the
26 applicant has been accepted as a data furnisher by a
27 consumer reporting agency; requiring program licensees
28 to underwrite program loans; prohibiting program
29 licensees from making program loans under certain
30 circumstances; requiring program licensees to seek
31 certain information and documentation; prohibiting
32 program licensees from requiring certain waivers from
33 borrowers; providing applicability; creating s.
34 516.44, F.S.; requiring all arrangements between
35 program licensees and access partners to be specified
36 in written access partner agreements; providing
37 requirements for such agreements; specifying access
38 partner services that may be used by program
39 licensees; specifying procedures for borrowers’
40 payment receipts or access partners’ disbursement of
41 program loans; providing recordkeeping requirements;
42 prohibiting certain activities by access partners;
43 providing disclosure statement requirements; providing
44 requirements and prohibitions relating to compensation
45 paid to access partners; requiring program licensees
46 to provide the office with a specified notice after
47 contracting with access partners; defining the term
48 “affiliated party”; requiring access partners to
49 provide program licensees with a certain written
50 notice within a specified time; providing that program
51 licensees are responsible for acts of their access
52 partners; requiring the commission to adopt rules;
53 creating s. 516.45, F.S.; requiring the office to
54 examine program licensees at certain intervals,
55 beginning on a specified date; providing an exception;
56 limiting the scope of certain examinations and
57 investigations; authorizing the office to take certain
58 disciplinary action against program licensees and
59 access partners; requiring the commission to adopt
60 rules; creating s. 516.46, F.S.; requiring program
61 licensees to file an annual report with the office
62 beginning on a specified date; requiring the office to
63 post an annual report on its website by a specified
64 date; specifying information to be contained in the
65 reports; requiring the commission to adopt rules;
66 providing for future repeal of the pilot program;
67 providing an effective date.
68
69 Be It Enacted by the Legislature of the State of Florida:
70
71 Section 1. Section 516.405, Florida Statutes, is created to
72 read:
73 516.405 Access to Responsible Credit Pilot Program.—
74 (1) The Access to Responsible Credit Pilot Program is
75 created within the Office of Financial Regulation to allow more
76 Floridians to obtain responsible consumer finance loans in
77 principal amounts of at least $300 but not more than $10,000.
78 (2) The pilot program is intended to assist consumers in
79 building their credit and to provide additional consumer
80 protections for these loans that exceed current protections
81 under general law.
82 Section 2. Section 516.41, Florida Statutes, is created to
83 read:
84 516.41 Definitions.—As used in ss. 516.405-516.46, the
85 term:
86 (1) “Access partner” means an entity that, at the entity’s
87 physical business location or through online access, cellular
88 telephone, or other means, performs one or more of the services
89 authorized in s. 516.44(2) on behalf of a program licensee. The
90 term does not include a credit service organization as defined
91 in s. 817.7001 or a loan broker as defined in s. 687.14.
92 (2) “Consumer reporting agency” has the same meaning as the
93 term “consumer reporting agency that compiles and maintains
94 files on consumers on a nationwide basis” in the Fair Credit
95 Reporting Act, 15 U.S.C. s. 1681a(p).
96 (3) “Credit score” has the same meaning as in the Fair
97 Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
98 (4) “Data furnisher” has the same meaning as the term
99 “furnisher” in 12 C.F.R. s. 1022.41(c).
100 (5) “Pilot program” or “program” means the Access to
101 Responsible Credit Pilot Program.
102 (6) “Pilot program license” or “program license” means a
103 license issued under ss. 516.405-516.46 authorizing a program
104 licensee to make and collect program loans.
105 (7) “Program branch office license” means a license issued
106 under the program for each location, other than a program
107 licensee’s or access partner’s principal place of business:
108 (a) The address of which appears on business cards,
109 stationery, or advertising used by the program licensee in
110 connection with business conducted under this chapter;
111 (b) At which the program licensee’s name, advertising or
112 promotional materials, or signage suggests that program loans
113 are originated, negotiated, funded, or serviced by the program
114 licensee; or
115 (c) At which program loans are originated, negotiated,
116 funded, or serviced by the program licensee.
117 (8) “Program licensee” means a person who is licensed to
118 make and collect loans under this chapter and who is approved by
119 the office to participate in the program.
120 (9) “Program loan” means a consumer finance loan with a
121 principal amount of at least $300, but not more than $10,000,
122 originated pursuant to ss. 516.405–516.46, excluding the amount
123 of the origination fee authorized under s. 516.43(3).
124 (10) “Refinance program loan” means a program loan that
125 extends additional principal to a borrower and replaces and
126 revises an existing program loan contract with the borrower. A
127 refinance program loan does not include an extension, a
128 deferral, or a rewrite of the program loan.
129 Section 3. Section 516.42, Florida Statutes, is created to
130 read:
131 516.42 Requirements for program participation; program
132 application requirements.—
133 (1) A person may not advertise, offer, or make a program
134 loan, or impose any charges or fees pursuant to s. 516.43,
135 unless the person obtains a pilot program license from the
136 office.
137 (2) In order to obtain a pilot program license, a person
138 must:
139 (a)1. Be licensed to make and collect consumer finance
140 loans under s. 516.05; or
141 2. Submit the application for the license required in s.
142 516.05 concurrently with the application for the program
143 license.
144 (b) Be accepted as a data furnisher by a consumer reporting
145 agency.
146 (c) Not be the subject of any insolvency proceeding or a
147 pending criminal prosecution.
148 (d) Not be subject to the issuance of a cease and desist
149 order; the issuance of a removal order; the denial, suspension,
150 or revocation of a license; or any other action within the
151 authority of the office, any financial regulatory agency in this
152 state, or any other state or federal regulatory agency that
153 affects the ability of such person to participate in the
154 program.
155 (3)(a) A program applicant must file with the office a
156 digital application, in a form and manner prescribed by
157 commission rule, which contains all of the following information
158 with respect to the applicant:
159 1. The legal business name and any other name under which
160 the applicant operates.
161 2. The applicant’s main address.
162 3. The applicant’s telephone number and e-mail address.
163 4. The address of each program branch office.
164 5. The name, title, address, telephone number, and e-mail
165 address of the applicant’s contact person.
166 6. The license number, if the applicant is licensed under
167 s. 516.05.
168 7. A statement as to whether the applicant intends to use
169 the services of one or more access partners under s. 516.44.
170 8. A statement that the applicant has been accepted as a
171 data furnisher by a consumer reporting agency and will report to
172 a consumer reporting agency the payment performance of each
173 borrower on all program loans.
174 9. The signature and certification of an authorized person
175 of the applicant.
176 (b) A person who desires to participate in the program but
177 who is not licensed to make consumer finance loans pursuant to
178 s. 516.05 must concurrently submit the following digital
179 applications to the office, in a form and manner specified in
180 this chapter:
181 1. An application pursuant to s. 516.03 for licensure to
182 make consumer finance loans.
183 2. An application for admission to the program in
184 accordance with paragraph (a).
185 (4) Except as otherwise provided in ss. 516.405-516.46, a
186 program licensee is subject to all the laws and rules governing
187 consumer finance loans under this chapter. A program license
188 must be renewed biennially.
189 (5) Notwithstanding s. 516.05(3), only one program license
190 is required for a person to make program loans under ss.
191 516.405-516.46, regardless of whether the program licensee
192 offers program loans to prospective borrowers at its own
193 physical business locations, through access partners, or via an
194 electronic access point through which a prospective borrower may
195 directly access the website of the program licensee.
196 (6) Each branch office of a program licensee must be
197 licensed under this section.
198 (7) The office shall issue a program branch office license
199 to a program licensee after the office determines that the
200 program licensee has submitted a completed electronic
201 application for a program branch office license in a form
202 prescribed by commission rule. The program branch office license
203 must be issued in the name of the program licensee that
204 maintains the branch office. An application is considered
205 received for purposes of s. 120.60 upon receipt of a completed
206 application form. The application for a program branch office
207 license must contain the following information:
208 (a) The legal business name and any other name under which
209 the applicant operates.
210 (b) The applicant’s main address.
211 (c) The applicant’s telephone number and e-mail address.
212 (d) The address of each program branch office.
213 (e) The name, title, address, telephone number, and e-mail
214 address of the applicant’s contact person.
215 (f) The applicant’s license number, if the applicant is
216 licensed under this chapter.
217 (g) The signature and certification of an authorized person
218 of the applicant.
219 (8) Except as provided in subsection (9), a program branch
220 office license must be renewed biennially at the time of
221 renewing the program license.
222 (9) Notwithstanding subsection (7), the office may deny an
223 initial or renewal application for a program license or program
224 branch office license if the applicant or any person with power
225 to direct the management or policies of the applicant’s business
226 is:
227 (a) The subject of any insolvency proceeding;
228 (b) The subject of a pending criminal prosecution in any
229 jurisdiction until conclusion of such criminal prosecution; or
230 (c) Subject to the issuance of a cease and desist order;
231 the issuance of a removal order; the denial, suspension, or
232 revocation of a license; or any other action within the
233 authority of the office, any financial regulatory agency in this
234 state, or any other state or federal regulatory agency that
235 affects the applicant’s ability to participate in the program.
236 (10) The commission shall adopt rules to implement this
237 section.
238 Section 4. Section 516.43, Florida Statutes, is created to
239 read:
240 516.43 Requirements for program loans.—
241 (1) REQUIREMENTS.—A program licensee shall comply with each
242 of the following requirements in making program loans:
243 (a) A program loan must be unsecured.
244 (b) A program loan must have:
245 1. A term of at least 120 days for a loan with a principal
246 balance upon origination of at least $300, but not more than
247 $3,000.
248 2. A term of at least 12 months, but not more than 60
249 months, for a loan with a principal balance upon origination of
250 more than $3,000.
251 (c) A program loan must not impose a prepayment penalty. A
252 program loan must be repayable by the borrower in substantially
253 equal, periodic installments, except that the final payment may
254 be less than the amount of the prior installments. Installments
255 must be due either every 2 weeks, semimonthly, or monthly.
256 (d) A program loan must include a borrower’s right to
257 rescind the program loan by notifying the program licensee of
258 the borrower’s intent to rescind the program loan and returning
259 the principal advanced by the end of the business day after the
260 day the program loan is consummated.
261 (e) Notwithstanding s. 516.031, the maximum annual interest
262 rate charged on a program loan to the borrower, which must be
263 fixed for the duration of the program loan, is 36 percent on
264 that portion of the unpaid principal balance up to and including
265 $3,000; 30 percent on that portion of the unpaid principal
266 balance exceeding $3,000 and up to and including $4,000; and 24
267 percent on that portion of the unpaid principal balance
268 exceeding $4,000 and up to and including $10,000. The original
269 principal amount of the program loan is equal to the amount
270 financed as defined by the federal Truth in Lending Act and
271 Regulation Z of the Board of Governors of the Federal Reserve
272 System. In determining compliance with the maximum annual
273 interest rates in this paragraph, the computations used must be
274 simple interest through the application of a daily periodic rate
275 to the actual unpaid principal balance each day and may not be
276 added-on interest or any other computations.
277 (f) If two or more interest rates are applied to the
278 principal amount of a program loan, the program licensee may
279 charge, contract for, and receive interest at that single annual
280 percentage rate that, if applied according to the actuarial
281 method to each of the scheduled periodic balances of principal,
282 would produce at maturity the same total amount of interest as
283 would result from the application of the two or more rates
284 otherwise permitted, based upon the assumption that all payments
285 are made as agreed.
286 (g) The program licensee shall reduce the interest rates
287 specified in paragraph (e) on each subsequent program loan to
288 the same borrower by a minimum of 1 percent, up to a maximum of
289 6 percent, if all of the following conditions are met:
290 1. The subsequent program loan is originated within 180
291 days after the prior program loan is fully repaid.
292 2. The borrower was never more than 15 days delinquent on
293 the prior program loan.
294 3. The prior program loan was outstanding for at least one
295 half of its original term before its repayment.
296 (h) The program licensee may not induce or permit any
297 person to become obligated to the program licensee, directly or
298 contingently, or both, under more than one program loan at the
299 same time with the program licensee.
300 (i) The program licensee may not refinance a program loan
301 unless all of the following conditions are met at the time the
302 borrower submits an application to refinance:
303 1. The principal amount payable may not include more than
304 60 days’ unpaid interest accrued on the previous program loan
305 pursuant to s. 516.031(5).
306 2. For a program loan with an original term up to and
307 including 25 months, the borrower has repaid at least 60 percent
308 of the outstanding principal remaining on his or her existing
309 program loan.
310 3. For a program loan with an original term of more than 25
311 months, but not more than 60 months, the borrower has made
312 current payments for at least 9 months on his or her existing
313 program loan.
314 4. The borrower is current on payments for his or her
315 existing program loan.
316 5. The program licensee must underwrite the new program
317 loan in accordance with subsection (7).
318 (j) In lieu of the provisions of s. 687.08, the program
319 licensee or, if applicable, its approved access partner shall
320 make available to the borrower by electronic or physical means a
321 plain and complete receipt of payment at the time that a payment
322 is made by the borrower. For audit purposes, the program
323 licensee must maintain an electronic record for each receipt
324 made available to a borrower, which must include a copy of the
325 receipt and the date and time that the receipt was generated.
326 Each receipt made available to the borrower must show all of the
327 following:
328 1. The name of the borrower.
329 2. The name of the access partner, if applicable.
330 3. The total payment amount received.
331 4. The date of payment.
332 5. The program loan balance before and after application of
333 the payment.
334 6. The amount of the payment that was applied to the
335 principal, interest, and fees.
336 7. The type of payment made by the borrower.
337 8. The following statement, prominently displayed in a type
338 size equal to or larger than the type size used to display the
339 other items on the receipt: “If you have any questions about
340 your loan now or in the future, you should direct those
341 questions to ...(name of program licensee)... by ...(at least
342 two different ways in which a borrower may contact the program
343 licensee)....”
344 (2) WRITTEN DISCLOSURES AND STATEMENTS.—
345 (a) Notwithstanding s. 516.15(1), the loan contract and all
346 written disclosures and statements may be provided by a program
347 licensee to a borrower in English or in the language in which
348 the loan is negotiated.
349 (b) The program licensee shall provide to a borrower all
350 the statements required of licensees under s. 516.15.
351 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program
352 licensee may:
353 (a) Contract for and receive an origination fee from a
354 borrower on a program loan. The program licensee may either
355 deduct the origination fee from the principal amount of the loan
356 disbursed to the borrower or capitalize the origination fee into
357 the principal balance of the loan. The origination fee is fully
358 earned and nonrefundable immediately upon the making of the
359 program loan and may not exceed the lesser of 6 percent of the
360 principal amount of the program loan made to the borrower,
361 exclusive of the origination fee, or $90.
362 (b) Not charge a borrower an origination fee more than
363 twice in any 12-month period.
364 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
365 program licensee may:
366 (a) Notwithstanding s. 516.031, require payment from a
367 borrower of no more than $20 for fees incurred by the program
368 licensee from a dishonored payment due to insufficient funds of
369 the borrower.
370 (b) Notwithstanding s. 516.031(3)(a)9., contract for and
371 receive a delinquency charge of up to $15 in a calendar month
372 for one or more payments that are in default for at least 10
373 days if the charge is agreed upon, in writing, between the
374 program licensee and the borrower before it is imposed.
375
376 The program licensee, or any wholly owned subsidiary of the
377 program licensee, may not sell or assign an unpaid debt to an
378 independent third party for collection purposes unless the debt
379 has been delinquent for at least 30 days.
380 (5) CREDIT EDUCATION.—Before disbursement of program loan
381 proceeds to the borrower, the program licensee must:
382 (a) Direct the borrower to the consumer credit counseling
383 services offered by an independent third party; or
384 (b) Provide a credit education program or seminar to the
385 borrower. The borrower is not required to participate in such
386 education program or seminar. A credit education program or
387 seminar offered pursuant to this paragraph must be provided at
388 no cost to the borrower.
389 (6) CREDIT REPORTING.—
390 (a) The program licensee shall report each borrower’s
391 payment performance to at least one consumer reporting agency.
392 (b) The office may not approve an applicant for the program
393 license before the applicant has been accepted as a data
394 furnisher by a consumer reporting agency.
395 (c) The program licensee shall provide each borrower with
396 the name or names of the consumer reporting agency or agencies
397 to which it will report the borrower’s payment history.
398 (7) PROGRAM LOAN UNDERWRITING.—
399 (a) The program licensee must underwrite each program loan
400 to determine a borrower’s ability and willingness to repay the
401 program loan pursuant to the program loan terms. The program
402 licensee may not make a program loan if it determines that the
403 borrower’s total monthly debt service payments at the time of
404 origination, including the program loan for which the borrower
405 is being considered and all outstanding forms of credit that can
406 be independently verified by the program licensee, exceed 50
407 percent of the borrower’s gross monthly income for a loan of not
408 more than $3,000, or exceed 36 percent of the borrower’s gross
409 monthly income for a loan of more than $3,000.
410 (b)1. The program licensee must seek information and
411 documentation pertaining to all of a borrower’s outstanding debt
412 obligations during the loan application and underwriting
413 process, including loans that are self-reported by the borrower
414 but not available through independent verification. The program
415 licensee must verify such information using a credit report from
416 at least one consumer reporting agency or through other
417 available electronic debt verification services that provide
418 reliable evidence of a borrower’s outstanding debt obligations.
419 2. The program licensee is not required to consider loans
420 made to a borrower by friends or family in determining the
421 borrower’s debt-to-income ratio.
422 (c) The program licensee must verify the borrower’s income
423 to determine the debt-to-income ratio using information from:
424 1. Electronic means or services that provide reliable
425 evidence of the borrower’s actual income; or
426 2. The Internal Revenue Service Form W-2, tax returns,
427 payroll receipts, bank statements, or other third-party
428 documents that provide reasonably reliable evidence of the
429 borrower’s actual income.
430 (8) WAIVERS.—
431 (a) A program licensee may not require, as a condition of
432 providing the program loan, that the borrower:
433 1. Waive any right, penalty, remedy, forum, or procedure
434 provided for in any law applicable to the program loan,
435 including the right to file and pursue a civil action or file a
436 complaint with or otherwise communicate with the office, a
437 court, or any other governmental entity.
438 2. Agree to the application of laws other than those of
439 this state.
440 3. Agree to resolve disputes in a jurisdiction outside of
441 this state.
442 (b) A waiver that is required as a condition of doing
443 business with the program licensee is presumed involuntary,
444 unconscionable, against public policy, and unenforceable.
445 (c) A program licensee may not refuse to do business with
446 or discriminate against a borrower or an applicant on the basis
447 of the borrower’s or applicant’s refusal to waive any right,
448 penalty, remedy, forum, or procedure, including the right to
449 file and pursue a civil action or complaint with, or otherwise
450 communicate with, the office, a court, or any other governmental
451 entity. The exercise of a person’s right to refuse to waive any
452 right, penalty, remedy, forum, or procedure, including a
453 rejection of a contract requiring a waiver, does not affect any
454 otherwise legal terms of a contract or an agreement.
455 (d) This subsection does not apply to any agreement to
456 waive any right, penalty, remedy, forum, or procedure, including
457 any agreement to arbitrate a claim or dispute after a claim or
458 dispute has arisen. This subsection does not affect the
459 enforceability or validity of any other provision of the
460 contract.
461 Section 5. Section 516.44, Florida Statutes, is created to
462 read:
463 516.44 Access partners.—
464 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a
465 program licensee and an access partner must be specified in a
466 written access partner agreement between the parties. The
467 agreement must contain the following provisions:
468 (a) The access partner agrees to comply with this section
469 and all rules adopted under this section regarding the
470 activities of access partners.
471 (b) The office has access to the access partner’s books and
472 records pertaining to the access partner’s operations under the
473 agreement with the program licensee in accordance with s.
474 516.45(3) and may examine the access partner pursuant to s.
475 516.45.
476 (2) AUTHORIZED SERVICES.—A program licensee may use the
477 services of one or more access partners as provided in this
478 section. An access partner may perform one or more of the
479 following services for the program licensee:
480 (a) Distributing, circulating, using, or publishing printed
481 brochures, flyers, fact sheets, or other written materials
482 relating to program loans that the program licensee may make or
483 negotiate. The written materials must be reviewed and approved
484 in writing by the program licensee before being distributed,
485 circulated, used, or published.
486 (b) Providing written factual information about program
487 loan terms, conditions, or qualification requirements to a
488 prospective borrower which has been prepared by the program
489 licensee or reviewed and approved in writing by the program
490 licensee. An access partner may discuss the information with a
491 prospective borrower in general terms.
492 (c) Notifying a prospective borrower of the information
493 needed in order to complete a program loan application.
494 (d) Entering information provided by the prospective
495 borrower on a preprinted or an electronic application form or in
496 a preformatted computer database.
497 (e) Assembling credit applications and other materials
498 obtained in the course of a credit application transaction for
499 submission to the program licensee.
500 (f) Contacting the program licensee to determine the status
501 of a program loan application.
502 (g) Communicating a response that is returned by the
503 program licensee’s automated underwriting system to a borrower
504 or a prospective borrower.
505 (h) Obtaining a borrower’s signature on documents prepared
506 by the program licensee and delivering final copies of the
507 documents to the borrower.
508 (i) Disbursing program loan proceeds to a borrower if this
509 method of disbursement is acceptable to the borrower, subject to
510 the requirements of subsection (3). A loan disbursement made by
511 an access partner under this paragraph is deemed to be made by
512 the program licensee on the date that the funds are disbursed or
513 otherwise made available by the access partner to the borrower.
514 (j) Receiving a program loan payment from the borrower if
515 this method of payment is acceptable to the borrower, subject to
516 the requirements of subsection (3).
517 (k) Operating an electronic access point through which a
518 prospective borrower may directly access the website of the
519 program licensee to apply for a program loan.
520 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
521 (a) A loan payment made by a borrower to an access partner
522 under paragraph (2)(j) must be applied to the borrower’s program
523 loan and deemed received by the program licensee as of the date
524 on which the payment is received by the access partner.
525 (b) An access partner that receives a loan payment from a
526 borrower must deliver or cause to be delivered to the borrower a
527 plain and complete receipt showing all of the information
528 specified in s. 516.43(1)(j) at the time that the payment is
529 made by the borrower.
530 (c) A borrower who submits a loan payment to an access
531 partner under this subsection is not liable for a failure or
532 delay by the access partner in transmitting the payment to the
533 program licensee.
534 (d) An access partner that disburses or receives loan
535 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
536 maintain records of all disbursements made and loan payments
537 received for at least 2 years.
538 (4) PROHIBITED ACTIVITIES.—An access partner may not:
539 (a) Provide counseling or advice to a borrower or
540 prospective borrower with respect to any loan term.
541 (b) Provide loan-related marketing material that has not
542 previously been approved by the program licensee to a borrower
543 or a prospective borrower.
544 (c) Negotiate a loan term between a program licensee and a
545 prospective borrower.
546 (d) Offer information pertaining to a single prospective
547 borrower to more than one program licensee. However, if a
548 program licensee has declined to offer a program loan to a
549 prospective borrower and has so notified the prospective
550 borrower in writing, the access partner may then offer
551 information pertaining to that borrower to another program
552 licensee with whom it has an access partner agreement.
553 (e) Require a borrower to pay any fees or charges to the
554 access partner or to any other person in connection with a
555 program loan other than those permitted under ss. 516.405
556 516.46.
557 (5) DISCLOSURE STATEMENTS.—
558 (a) At the time that the access partner receives or
559 processes an application for a program loan, the access partner
560 shall provide the following statement to the applicant on behalf
561 of the program licensee, in at least 10-point type, and shall
562 request that the applicant acknowledge receipt of the statement
563 in writing:
564
565 Your loan application has been referred to us by
566 ...(name of access partner).... We may pay a fee to
567 ...(name of access partner)... for the successful
568 referral of your loan application. If you are approved
569 for the loan, ...(name of program licensee)... will
570 become your lender. If you have any questions about
571 your loan, now or in the future, you should direct
572 those questions to ...(name of program licensee)... by
573 ...(insert at least two different ways in which a
574 borrower may contact the program licensee).... If you
575 wish to report a complaint about ...(name of access
576 partner)... or ...(name of program licensee)...
577 regarding this loan transaction, you may contact the
578 Division of Consumer Finance of the Office of
579 Financial Regulation at 850-487-9687 or
580 http://www.flofr.com.
581
582 (b) If the loan applicant has questions about the program
583 loan which the access partner is not permitted to answer, the
584 access partner must make a good faith effort to assist the
585 applicant in making direct contact with the program licensee
586 before the program loan is consummated.
587 (6) COMPENSATION.—
588 (a) The program licensee may compensate an access partner
589 in accordance with a written agreement and a compensation
590 schedule that is agreed to by the program licensee and the
591 access partner, subject to the requirements in paragraph (b).
592 (b) The compensation of an access partner by a program
593 licensee is subject to the following requirements:
594 1. Compensation may not be paid to an access partner in
595 connection with a loan application unless the program loan is
596 consummated.
597 2. The access partner’s location for services and other
598 information required in subsection (7) must be reported to the
599 office.
600 (7) NOTICE TO OFFICE.—A program licensee that uses the
601 service of an access partner must notify the office, in a form
602 and manner prescribed by commission rule, within 15 days after
603 entering into a contract with an access partner regarding all of
604 the following:
605 (a) The name, business address, and licensing details of
606 the access partner and all locations at which the access partner
607 will perform services under this section.
608 (b) The name and contact information for an employee of the
609 access partner who is knowledgeable about, and has the authority
610 to execute, the access partner agreement.
611 (c) The name and contact information of one or more
612 employees of the access partner who are responsible for that
613 access partner’s referring activities on behalf of the program
614 licensee.
615 (d) A statement by the program licensee that it has
616 conducted due diligence with respect to the access partner and
617 has confirmed that none of the following apply:
618 1. The filing of a petition under the United States
619 Bankruptcy Code for bankruptcy or reorganization by the access
620 partner.
621 2. The commencement of an administrative or a judicial
622 license suspension or revocation proceeding, or the denial of a
623 license request or renewal, by any state, the District of
624 Columbia, any United States territory, or any foreign country in
625 which the access partner operates, plans to operate, or is
626 licensed to operate.
627 3. A felony indictment involving the access partner or an
628 affiliated party.
629 4. The felony conviction, guilty plea, or plea of nolo
630 contendere, regardless of adjudication, of the access partner or
631 an affiliated party.
632 5. Any suspected criminal act perpetrated in this state
633 relating to activities regulated under this chapter by the
634 access partner.
635 6. Notification by a law enforcement or prosecutorial
636 agency that the access partner is under criminal investigation,
637 including, but not limited to, subpoenas to produce records or
638 testimony and warrants issued by a court of competent
639 jurisdiction which authorize the search and seizure of any
640 records relating to a business activity regulated under this
641 chapter.
642
643 As used in this paragraph, the term “affiliated party” means a
644 director, officer, responsible person, employee, or foreign
645 affiliate of an access partner; or a person who has a
646 controlling interest in an access partner.
647 (e) Any other information requested by the office, subject
648 to the limitations specified in s. 516.45(3).
649 (8) NOTICE OF CHANGES.—An access partner must provide the
650 program licensee with a written notice sent by registered mail
651 within 30 days after any change is made to the information
652 specified in paragraphs (7)(a)-(c) and within 30 days after the
653 occurrence or knowledge of any of the events specified in
654 paragraph (7)(d).
655 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
656 licensee is responsible for any act of its access partner if
657 such act is a violation of this chapter.
658 (10) RULEMAKING.—The commission shall adopt rules to
659 implement this section.
660 Section 6. Section 516.45, Florida Statutes, is created to
661 read:
662 516.45 Examinations, investigations, and grounds for
663 disciplinary action.—
664 (1) Notwithstanding any other law, commencing on January 1,
665 2022, the office shall examine each program licensee that is
666 accepted into the program in accordance with this chapter at
667 least once every 24 months.
668 (2) Notwithstanding subsection (1), the office may waive
669 one or more branch office examinations if the office finds that
670 such examinations are not necessary for the protection of the
671 public due to the centralized operations of the program licensee
672 or other factors acceptable to the office.
673 (3) The scope of any investigation or examination of a
674 program licensee or access partner must be limited to those
675 books, accounts, records, documents, materials, and matters
676 reasonably necessary to determine compliance with this chapter.
677 (4) A program licensee who violates any applicable
678 provision of this chapter is subject to disciplinary action
679 pursuant to s. 516.07(2). Any such disciplinary action is
680 subject to s. 120.60. The program licensee is also subject to
681 disciplinary action for a violation of s. 516.44 committed by
682 any of its access partners.
683 (5) The office may take any of the following actions
684 against an access partner who violates s. 516.44:
685 (a) Bar the access partner from performing services under
686 this chapter.
687 (b) Bar the access partner from performing services at one
688 or more of its specific locations.
689 (6) The commission shall adopt rules to implement this
690 section.
691 Section 7. Section 516.46, Florida Statutes, is created to
692 read:
693 516.46 Annual reports by program licensees and the office.—
694 (1) By March 15, 2021, and each year thereafter, a program
695 licensee shall file a report with the office on a form and in a
696 manner prescribed by commission rule. The report must include
697 each of the items specified in subsection (2) for the preceding
698 year using aggregated or anonymized data without reference to
699 any borrower’s nonpublic personal information or any program
700 licensee’s or access partner’s proprietary or trade secret
701 information.
702 (2) By January 1, 2022, and each year thereafter, the
703 office shall post a report on its website summarizing the use of
704 the program based on the information contained in the reports
705 filed in the preceding year by program licensees under
706 subsection (1). The office’s report must publish the information
707 in the aggregate so as not to identify data by any specific
708 program licensee. The report must specify the period to which
709 the report corresponds and must include, but is not limited to,
710 the following for that period:
711 (a) The number of applicants approved for a program license
712 by the office.
713 (b) The number of program loan applications received by
714 program licensees, the number of program loans made under the
715 program, the total amount loaned, the distribution of loan
716 lengths upon origination, and the distribution of interest rates
717 and principal amounts upon origination among those program
718 loans.
719 (c) The number of borrowers who obtained more than one
720 program loan and the distribution of the number of program loans
721 per borrower.
722 (d) Of those borrowers who obtained more than one program
723 loan and had a credit score by the time of their subsequent
724 loan, the percentage of those borrowers whose credit scores
725 increased between successive loans, based on information from at
726 least one major credit bureau, and the average size of the
727 increase. In each case, the report must include the name of the
728 credit score, such as FICO or VantageScore, which the program
729 licensee is required to disclose.
730 (e) The income distribution of borrowers upon program loan
731 origination, including the number of borrowers who obtained at
732 least one program loan and who resided in a low-income or
733 moderate-income census tract at the time of their loan
734 applications.
735 (f) The number of borrowers who obtained program loans for
736 the following purposes, based on the borrowers’ responses at the
737 time of their loan applications indicating the primary purpose
738 for which the program loans were obtained:
739 1. To pay medical expenses.
740 2. To pay for vehicle repair or a vehicle purchase.
741 3. To pay bills.
742 4. To consolidate debt.
743 5. To build or repair credit history.
744 6. To finance a small business.
745 7. To pay other expenses.
746 (g) The number of borrowers who self-report that they had a
747 bank account at the time of their loan application and the
748 number of borrowers who self-report that they did not have a
749 bank account at the time of their loan application.
750 (h) For refinance program loans:
751 1. The number and percentage of borrowers who applied for a
752 refinance program loan.
753 2. Of those borrowers who applied for a refinance program
754 loan, the number and percentage of borrowers who obtained a
755 refinance program loan.
756 (i) The performance of program loans as reflected by all of
757 the following:
758 1. The number and percentage of borrowers who experienced
759 at least one delinquency lasting between 7 and 29 days and the
760 distribution of principal loan amounts corresponding to those
761 delinquencies.
762 2. The number and percentage of borrowers who experienced
763 at least one delinquency lasting between 30 and 59 days and the
764 distribution of principal loan amounts corresponding to those
765 delinquencies.
766 3. The number and percentage of borrowers who experienced
767 at least one delinquency lasting 60 days or more and the
768 distribution of principal loan amounts corresponding to those
769 delinquencies.
770 (3) The commission shall adopt rules to implement this
771 section.
772 Section 8. Sections 516.405-516.46, Florida Statutes, are
773 repealed on January 1, 2027, unless reenacted or superseded by
774 another law enacted by the Legislature before that date.
775 Section 9. This act shall take effect January 1, 2020.