Florida Senate - 2019 CS for CS for SB 874
By the Committees on Appropriations; and Banking and Insurance;
and Senator Rouson
576-04592-19 2019874c2
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.; authorizing the office to
54 examine each program licensee, branch office, and
55 access partner; limiting the scope of certain
56 examinations and investigations; authorizing the
57 office to take certain disciplinary action against
58 program licensees and access partners; requiring the
59 commission to adopt rules; creating s. 516.46, F.S.;
60 requiring program licensees to file an annual report
61 with the office beginning on a specified date;
62 requiring the office to post an annual report on its
63 website by a specified date; specifying information to
64 be contained in the reports; requiring the commission
65 to adopt rules; providing for future repeal of the
66 pilot program; providing an appropriation; providing
67 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.
142 516.03 concurrently with the application for the program
143 license. The application required by s. 516.03 must be approved
144 and the license under that section must be issued in order to
145 obtain the program license.
146 (b) Be accepted as a data furnisher by a consumer reporting
147 agency.
148 (c) Demonstrate financial responsibility, experience,
149 character, or general fitness, such as to command the confidence
150 of the public and to warrant the belief that the business
151 operated at the licensed or proposed location is lawful, honest,
152 fair, efficient, and within the purposes of this chapter.
153 (d) Not be subject to the issuance of a cease and desist
154 order; the issuance of a removal order; the denial, suspension,
155 or revocation of a license; or any other action within the
156 authority of the office, any financial regulatory agency in this
157 state, or any other state or federal regulatory agency that
158 affects the ability of such person to participate in the
159 program.
160 (3)(a) A program applicant must file with the office a
161 digital application in a form and manner prescribed by
162 commission rule which contains all of the following information
163 with respect to the applicant:
164 1. The legal business name and any other name under which
165 the applicant operates.
166 2. The applicant’s main address.
167 3. The applicant’s telephone number and e-mail address.
168 4. The address of each program branch office.
169 5. The name, title, address, telephone number, and e-mail
170 address of the applicant’s contact person.
171 6. The license number, if the applicant is licensed under
172 s. 516.05.
173 7. A statement as to whether the applicant intends to use
174 the services of one or more access partners under s. 516.44.
175 8. A statement that the applicant has been accepted as a
176 data furnisher by a consumer reporting agency and will report to
177 a consumer reporting agency the payment performance of each
178 borrower on all program loans.
179 9. The signature and certification of an authorized person
180 of the applicant.
181 (b) A person who desires to participate in the program but
182 who is not licensed to make consumer finance loans pursuant to
183 s. 516.05 must concurrently submit the following digital
184 applications in a form and manner specified in this chapter to
185 the office:
186 1. An application pursuant to s. 516.03 for licensure to
187 make consumer finance loans.
188 2. An application for admission to the program in
189 accordance with paragraph (a).
190 (4) Except as otherwise provided in ss. 516.405-516.46, a
191 program licensee is subject to all the laws and rules governing
192 consumer finance loans under this chapter. A program license
193 must be renewed biennially.
194 (5) Notwithstanding s. 516.05(3), only one program license
195 is required for a person to make program loans under ss.
196 516.405-516.46, regardless of whether the program licensee
197 offers program loans to prospective borrowers at its own
198 physical business locations, through access partners, or via an
199 electronic access point through which a prospective borrower may
200 directly access the website of the program licensee.
201 (6) Each branch office of a program licensee must be
202 licensed under this section.
203 (7) The office shall issue a program branch office license
204 to a program licensee after the office determines that the
205 program licensee has submitted a completed electronic
206 application for a program branch office license in a form
207 prescribed by commission rule. The program branch office license
208 must be issued in the name of the program licensee that
209 maintains the branch office. An application is considered
210 received for purposes of s. 120.60 upon receipt of a completed
211 application form. The application for a program branch office
212 license must contain the following information:
213 (a) The legal business name and any other name under which
214 the applicant operates.
215 (b) The applicant’s main address.
216 (c) The applicant’s telephone number and e-mail address.
217 (d) The address of each program branch office.
218 (e) The name, title, address, telephone number, and e-mail
219 address of the applicant’s contact person.
220 (f) The applicant’s license number, if the applicant is
221 licensed under this chapter.
222 (g) The signature and certification of an authorized person
223 of the applicant.
224 (8) Except as provided in subsection (9), a program branch
225 office license must be renewed biennially at the time of
226 renewing the program license.
227 (9) Notwithstanding subsection (7), the office may deny an
228 initial or renewal application for a program license or program
229 branch office license if the applicant or any person with power
230 to direct the management or policies of the applicant’s
231 business:
232 (a) Fails to demonstrate financial responsibility,
233 experience, character, or general fitness, such as to command
234 the confidence of the public and to warrant the belief that the
235 business operated at the licensed or proposed location is
236 lawful, honest, fair, efficient, and within the purposes of this
237 chapter.
238 (b) Pled nolo contendere to, or was convicted or found
239 guilty of, a crime involving fraud, dishonest dealing, or any
240 act of moral turpitude, regardless of whether adjudication was
241 withheld.
242 (c) Is subject to the issuance of a cease and desist order;
243 the issuance of a removal order; the denial, suspension, or
244 revocation of a license; or any other action within the
245 authority of the office, any financial regulatory agency in this
246 state, or any other state or federal regulatory agency that
247 affects the applicant’s ability to participate in the program.
248 (10) The commission shall adopt rules to implement this
249 section.
250 Section 4. Section 516.43, Florida Statutes, is created to
251 read:
252 516.43 Requirements for program loans.—
253 (1) REQUIREMENTS.—A program licensee shall comply with each
254 of the following requirements in making program loans:
255 (a) A program loan must be unsecured.
256 (b) A program loan must have:
257 1. A term of at least 120 days, but not more than 36
258 months, for a loan with a principal balance upon origination of
259 at least $300, but not more than $3,000.
260 2. A term of at least 12 months, but not more than 60
261 months, for a loan with a principal balance upon origination of
262 more than $3,000.
263 (c) A program loan must not impose a prepayment penalty. A
264 program loan must be repayable by the borrower in substantially
265 equal, periodic installments, except that the final payment may
266 be less than the amount of the prior installments. Installments
267 must be due either every 2 weeks, semimonthly, or monthly.
268 (d) A program loan must include a borrower’s right to
269 rescind the program loan by notifying the program licensee of
270 the borrower’s intent to rescind the program loan and returning
271 the principal advanced by the end of the business day after the
272 day the program loan is consummated.
273 (e) Notwithstanding s. 516.031, the maximum annual interest
274 rate charged on a program loan to the borrower, which must be
275 fixed for the duration of the program loan, is 36 percent on
276 that portion of the unpaid principal balance up to and including
277 $3,000; 30 percent on that portion of the unpaid principal
278 balance exceeding $3,000 and up to and including $4,000; and 24
279 percent on that portion of the unpaid principal balance
280 exceeding $4,000 and up to and including $10,000. The original
281 principal amount of the program loan is equal to the amount
282 financed as defined by the federal Truth in Lending Act and
283 Regulation Z of the Board of Governors of the Federal Reserve
284 System. In determining compliance with the maximum annual
285 interest rates in this paragraph, the computations used must be
286 simple interest through the application of a daily periodic rate
287 to the actual unpaid principal balance each day and may not be
288 added-on interest or any other computations.
289 (f) If two or more interest rates are applied to the
290 principal amount of a program loan, the program licensee may
291 charge, contract for, and receive interest at that single annual
292 percentage rate that, if applied according to the actuarial
293 method to each of the scheduled periodic balances of principal,
294 would produce at maturity the same total amount of interest as
295 would result from the application of the two or more rates
296 otherwise permitted, based upon the assumption that all payments
297 are made as agreed.
298 (g) The program licensee shall reduce the interest rates
299 specified in paragraph (e) on each subsequent program loan to
300 the same borrower by a minimum of 1 percent, up to a maximum of
301 6 percent, if all of the following conditions are met:
302 1. The subsequent program loan is originated within 180
303 days after the prior program loan is fully repaid.
304 2. The borrower was never more than 15 days delinquent on
305 the prior program loan.
306 3. The prior program loan was outstanding for at least one
307 half of its original term before its repayment.
308 (h) The program licensee may not induce or permit any
309 person to become obligated to the program licensee, directly or
310 contingently, or both, under more than one program loan at the
311 same time with the program licensee.
312 (i) The program licensee may not refinance a program loan
313 unless all of the following conditions are met at the time the
314 borrower submits an application to refinance:
315 1. The principal amount payable may not include more than
316 60 days’ unpaid interest accrued on the previous program loan
317 pursuant to s. 516.031(5).
318 2. For a program loan with an original term up to and
319 including 25 months, the borrower has repaid at least 60 percent
320 of the outstanding principal remaining on his or her existing
321 program loan.
322 3. For a program loan with an original term of more than 25
323 months, but not more than 60 months, the borrower has made
324 current payments for at least 9 months on his or her existing
325 program loan.
326 4. The borrower is current on payments for his or her
327 existing program loan.
328 5. The program licensee must underwrite the new program
329 loan in accordance with subsection (7).
330 (j) In lieu of the provisions of s. 687.08, the program
331 licensee or, if applicable, its approved access partner shall
332 make available to the borrower by electronic or physical means a
333 plain and complete receipt of payment at the time that a payment
334 is made by the borrower. For audit purposes, the program
335 licensee must maintain an electronic record for each receipt
336 made available to a borrower, which must include a copy of the
337 receipt and the date and time that the receipt was generated.
338 Each receipt made available to the borrower must show all of the
339 following:
340 1. The name of the borrower.
341 2. The name of the access partner, if applicable.
342 3. The total payment amount received.
343 4. The date of payment.
344 5. The program loan balance before and after application of
345 the payment.
346 6. The amount of the payment that was applied to the
347 principal, interest, and fees.
348 7. The type of payment made by the borrower.
349 8. The following statement, prominently displayed in a type
350 size equal to or larger than the type size used to display the
351 other items on the receipt: “If you have any questions about
352 your loan now or in the future, you should direct those
353 questions to ...(name of program licensee)... by ...(at least
354 two different ways in which a borrower may contact the program
355 licensee)....”
356 (2) WRITTEN DISCLOSURES AND STATEMENTS.—
357 (a) Notwithstanding s. 516.15(1), the loan contract and all
358 written disclosures and statements may be provided by a program
359 licensee to a borrower in English or in the language in which
360 the loan is negotiated.
361 (b) The program licensee shall provide to a borrower all
362 the statements required of licensees under s. 516.15.
363 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program
364 licensee may:
365 (a) Contract for and receive an origination fee from a
366 borrower on a program loan. The program licensee may either
367 deduct the origination fee from the principal amount of the loan
368 disbursed to the borrower or capitalize the origination fee into
369 the principal balance of the loan. The origination fee is fully
370 earned and nonrefundable immediately upon the making of the
371 program loan and may not exceed the lesser of 6 percent of the
372 principal amount of the program loan made to the borrower,
373 exclusive of the origination fee, or $90.
374 (b) Not charge a borrower an origination fee more than
375 twice in any 12-month period.
376 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
377 program licensee may:
378 (a) Notwithstanding s. 516.031, require payment from a
379 borrower of no more than $20 for fees incurred by the program
380 licensee from a dishonored payment due to insufficient funds of
381 the borrower.
382 (b) Notwithstanding s. 516.031(3)(a)9., contract for and
383 receive a delinquency charge of up to $15 in a calendar month
384 for one or more payments that are in default for at least 10
385 days if the charge is agreed upon, in writing, between the
386 program licensee and the borrower before it is imposed.
387
388 The program licensee, or any wholly owned subsidiary of the
389 program licensee, may not sell or assign an unpaid debt to an
390 independent third party for collection purposes unless the debt
391 has been delinquent for at least 30 days.
392 (5) CREDIT EDUCATION.—Before disbursement of program loan
393 proceeds to the borrower, the program licensee must:
394 (a) Direct the borrower to the consumer credit counseling
395 services offered by an independent third party; or
396 (b) Provide a credit education program or seminar to the
397 borrower. The borrower is not required to participate in such
398 education program or seminar. A credit education program or
399 seminar offered pursuant to this paragraph must be provided at
400 no cost to the borrower.
401 (6) CREDIT REPORTING.—
402 (a) The program licensee shall report each borrower’s
403 payment performance to at least one consumer reporting agency.
404 (b) The office may not approve an applicant for the program
405 license before the applicant has been accepted as a data
406 furnisher by a consumer reporting agency.
407 (c) The program licensee shall provide each borrower with
408 the name or names of the consumer reporting agency or agencies
409 to which it will report the borrower’s payment history.
410 (7) PROGRAM LOAN UNDERWRITING.—
411 (a) The program licensee must underwrite each program loan
412 to determine a borrower’s ability and willingness to repay the
413 program loan pursuant to the program loan terms. The program
414 licensee may not make a program loan if it determines that the
415 borrower’s total monthly debt service payments at the time of
416 origination, including the program loan for which the borrower
417 is being considered and all outstanding forms of credit that can
418 be independently verified by the program licensee, exceed 50
419 percent of the borrower’s gross monthly income for a loan of not
420 more than $3,000, or exceed 36 percent of the borrower’s gross
421 monthly income for a loan of more than $3,000.
422 (b)1. The program licensee must seek information and
423 documentation pertaining to all of a borrower’s outstanding debt
424 obligations during the loan application and underwriting
425 process, including loans that are self-reported by the borrower
426 but not available through independent verification. The program
427 licensee must verify such information using a credit report from
428 at least one consumer reporting agency or through other
429 available electronic debt verification services that provide
430 reliable evidence of a borrower’s outstanding debt obligations.
431 2. The program licensee is not required to consider loans
432 made to a borrower by friends or family in determining the
433 borrower’s debt-to-income ratio.
434 (c) The program licensee must verify the borrower’s income
435 to determine the debt-to-income ratio using information from:
436 1. Electronic means or services that provide reliable
437 evidence of the borrower’s actual income; or
438 2. The Internal Revenue Service Form W-2, tax returns,
439 payroll receipts, bank statements, or other third-party
440 documents that provide reasonably reliable evidence of the
441 borrower’s actual income.
442 (8) WAIVERS.—
443 (a) A program licensee may not require, as a condition of
444 providing the program loan, that the borrower:
445 1. Waive any right, penalty, remedy, forum, or procedure
446 provided for in any law applicable to the program loan,
447 including the right to file and pursue a civil action or file a
448 complaint with or otherwise communicate with the office, a
449 court, or any other governmental entity.
450 2. Agree to the application of laws other than those of
451 this state.
452 3. Agree to resolve disputes in a jurisdiction outside of
453 this state.
454 (b) A waiver that is required as a condition of doing
455 business with the program licensee is presumed involuntary,
456 unconscionable, against public policy, and unenforceable.
457 (c) A program licensee may not refuse to do business with
458 or discriminate against a borrower or an applicant on the basis
459 of the borrower’s or applicant’s refusal to waive any right,
460 penalty, remedy, forum, or procedure, including the right to
461 file and pursue a civil action or complaint with, or otherwise
462 communicate with, the office, a court, or any other governmental
463 entity. The exercise of a person’s right to refuse to waive any
464 right, penalty, remedy, forum, or procedure, including a
465 rejection of a contract requiring a waiver, does not affect any
466 otherwise legal terms of a contract or an agreement.
467 (d) This subsection does not apply to any agreement to
468 waive any right, penalty, remedy, forum, or procedure, including
469 any agreement to arbitrate a claim or dispute after a claim or
470 dispute has arisen. This subsection does not affect the
471 enforceability or validity of any other provision of the
472 contract.
473 Section 5. Section 516.44, Florida Statutes, is created to
474 read:
475 516.44 Access partners.—
476 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a
477 program licensee and an access partner must be specified in a
478 written access partner agreement between the parties. The
479 agreement must contain the following provisions:
480 (a) The access partner agrees to comply with this section
481 and all rules adopted under this section regarding the
482 activities of access partners.
483 (b) The office has access to the access partner’s books and
484 records pertaining to the access partner’s operations under the
485 agreement with the program licensee in accordance with s.
486 516.45(3) and may examine the access partner pursuant to s.
487 516.45.
488 (2) AUTHORIZED SERVICES.—A program licensee may use the
489 services of one or more access partners as provided in this
490 section. An access partner may perform one or more of the
491 following services for the program licensee:
492 (a) Distributing, circulating, using, or publishing printed
493 brochures, flyers, fact sheets, or other written materials
494 relating to program loans that the program licensee may make or
495 negotiate. The written materials must be reviewed and approved
496 in writing by the program licensee before being distributed,
497 circulated, used, or published.
498 (b) Providing written factual information about program
499 loan terms, conditions, or qualification requirements to a
500 prospective borrower which has been prepared by the program
501 licensee or reviewed and approved in writing by the program
502 licensee. An access partner may discuss the information with a
503 prospective borrower in general terms.
504 (c) Notifying a prospective borrower of the information
505 needed in order to complete a program loan application.
506 (d) Entering information provided by the prospective
507 borrower on a preprinted or an electronic application form or in
508 a preformatted computer database.
509 (e) Assembling credit applications and other materials
510 obtained in the course of a credit application transaction for
511 submission to the program licensee.
512 (f) Contacting the program licensee to determine the status
513 of a program loan application.
514 (g) Communicating a response that is returned by the
515 program licensee’s automated underwriting system to a borrower
516 or a prospective borrower.
517 (h) Obtaining a borrower’s signature on documents prepared
518 by the program licensee and delivering final copies of the
519 documents to the borrower.
520 (i) Disbursing program loan proceeds to a borrower if this
521 method of disbursement is acceptable to the borrower, subject to
522 the requirements of subsection (3). A loan disbursement made by
523 an access partner under this paragraph is deemed to be made by
524 the program licensee on the date that the funds are disbursed or
525 otherwise made available by the access partner to the borrower.
526 (j) Receiving a program loan payment from the borrower if
527 this method of payment is acceptable to the borrower, subject to
528 the requirements of subsection (3).
529 (k) Operating an electronic access point through which a
530 prospective borrower may directly access the website of the
531 program licensee to apply for a program loan.
532 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
533 (a) A loan payment made by a borrower to an access partner
534 under paragraph (2)(j) must be applied to the borrower’s program
535 loan and deemed received by the program licensee as of the date
536 on which the payment is received by the access partner.
537 (b) An access partner that receives a loan payment from a
538 borrower must deliver or cause to be delivered to the borrower a
539 plain and complete receipt showing all of the information
540 specified in s. 516.43(1)(j) at the time that the payment is
541 made by the borrower.
542 (c) A borrower who submits a loan payment to an access
543 partner under this subsection is not liable for a failure or
544 delay by the access partner in transmitting the payment to the
545 program licensee.
546 (d) An access partner that disburses or receives loan
547 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
548 maintain records of all disbursements made and loan payments
549 received for at least 2 years.
550 (4) PROHIBITED ACTIVITIES.—An access partner may not:
551 (a) Provide counseling or advice to a borrower or
552 prospective borrower with respect to any loan term.
553 (b) Provide loan-related marketing material that has not
554 previously been approved by the program licensee to a borrower
555 or a prospective borrower.
556 (c) Negotiate a loan term between a program licensee and a
557 prospective borrower.
558 (d) Offer information pertaining to a single prospective
559 borrower to more than one program licensee. However, if a
560 program licensee has declined to offer a program loan to a
561 prospective borrower and has so notified the prospective
562 borrower in writing, the access partner may then offer
563 information pertaining to that borrower to another program
564 licensee with whom it has an access partner agreement.
565 (e) Require a borrower to pay any fees or charges to the
566 access partner or to any other person in connection with a
567 program loan other than those permitted under ss. 516.405
568 516.46.
569 (5) DISCLOSURE STATEMENTS.—
570 (a) At the time that the access partner receives or
571 processes an application for a program loan, the access partner
572 shall provide the following statement to the applicant on behalf
573 of the program licensee, in at least 10-point type, and shall
574 request that the applicant acknowledge receipt of the statement
575 in writing:
576
577 Your loan application has been referred to us by
578 ...(name of access partner).... We may pay a fee to
579 ...(name of access partner)... for the successful
580 referral of your loan application. If you are approved
581 for the loan, ...(name of program licensee)... will
582 become your lender. If you have any questions about
583 your loan, now or in the future, you should direct
584 those questions to ...(name of program licensee)... by
585 ...(insert at least two different ways in which a
586 borrower may contact the program licensee).... If you
587 wish to report a complaint about ...(name of access
588 partner)... or ...(name of program licensee)...
589 regarding this loan transaction, you may contact the
590 Division of Consumer Finance of the Office of
591 Financial Regulation at 850-487-9687 or
592 http://www.flofr.com.
593
594 (b) If the loan applicant has questions about the program
595 loan which the access partner is not permitted to answer, the
596 access partner must make a good faith effort to assist the
597 applicant in making direct contact with the program licensee
598 before the program loan is consummated.
599 (6) COMPENSATION.—
600 (a) The program licensee may compensate an access partner
601 in accordance with a written agreement and a compensation
602 schedule that is agreed to by the program licensee and the
603 access partner, subject to the requirements in paragraph (b).
604 (b) The compensation of an access partner by a program
605 licensee is subject to the following requirements:
606 1. Compensation may not be paid to an access partner in
607 connection with a loan application unless the program loan is
608 consummated.
609 2. The access partner’s location for services and other
610 information required in subsection (7) must be reported to the
611 office.
612 (7) NOTICE TO OFFICE.—A program licensee that uses the
613 service of an access partner must notify the office, in a form
614 and manner prescribed by commission rule, within 15 days after
615 entering into a contract with an access partner regarding all of
616 the following:
617 (a) The name, business address, and licensing details of
618 the access partner and all locations at which the access partner
619 will perform services under this section.
620 (b) The name and contact information for an employee of the
621 access partner who is knowledgeable about, and has the authority
622 to execute, the access partner agreement.
623 (c) The name and contact information of one or more
624 employees of the access partner who are responsible for that
625 access partner’s referring activities on behalf of the program
626 licensee.
627 (d) A statement by the program licensee that it has
628 conducted due diligence with respect to the access partner and
629 has confirmed that none of the following apply:
630 1. The filing of a petition under the United States
631 Bankruptcy Code for bankruptcy or reorganization by the access
632 partner.
633 2. The commencement of an administrative or a judicial
634 license suspension or revocation proceeding, or the denial of a
635 license request or renewal, by any state, the District of
636 Columbia, any United States territory, or any foreign country in
637 which the access partner operates, plans to operate, or is
638 licensed to operate.
639 3. A felony indictment involving the access partner or an
640 affiliated party.
641 4. The felony conviction, guilty plea, or plea of nolo
642 contendere, regardless of adjudication, of the access partner or
643 an affiliated party.
644 5. Any suspected criminal act perpetrated in this state
645 relating to activities regulated under this chapter by the
646 access partner.
647 6. Notification by a law enforcement or prosecutorial
648 agency that the access partner is under criminal investigation,
649 including, but not limited to, subpoenas to produce records or
650 testimony and warrants issued by a court of competent
651 jurisdiction which authorize the search and seizure of any
652 records relating to a business activity regulated under this
653 chapter.
654
655 As used in this paragraph, the term “affiliated party” means a
656 director, officer, responsible person, employee, or foreign
657 affiliate of an access partner; or a person who has a
658 controlling interest in an access partner.
659 (e) Any other information requested by the office, subject
660 to the limitations specified in s. 516.45(3).
661 (8) NOTICE OF CHANGES.—An access partner must provide the
662 program licensee with a written notice sent by registered mail
663 within 30 days after any change is made to the information
664 specified in paragraphs (7)(a)-(c) and within 30 days after the
665 occurrence or knowledge of any of the events specified in
666 paragraph (7)(d).
667 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
668 licensee is responsible for any act of its access partner if
669 such act is a violation of this chapter.
670 (10) RULEMAKING.—The commission shall adopt rules to
671 implement this section.
672 Section 6. Section 516.45, Florida Statutes, is created to
673 read:
674 516.45 Examinations, investigations, and grounds for
675 disciplinary action.—
676 (1) Notwithstanding any other law, the office may examine
677 each program licensee that is accepted into the program and each
678 branch office of the program licensee in accordance with this
679 chapter.
680 (2) Notwithstanding any other law, the office may examine
681 each access partner that is accepted into the program in
682 accordance with this chapter.
683 (3) The scope of any investigation or examination of a
684 program licensee or access partner must be limited to those
685 books, accounts, records, documents, materials, and matters
686 reasonably necessary to determine compliance with this chapter.
687 (4) A program licensee who violates any applicable
688 provision of this chapter is subject to disciplinary action
689 pursuant to s. 516.07(2). Any such disciplinary action is
690 subject to s. 120.60. The program licensee is also subject to
691 disciplinary action for a violation of s. 516.44 committed by
692 any of its access partners.
693 (5) The office may take any of the following actions
694 against an access partner who violates s. 516.44:
695 (a) Bar the access partner from performing services under
696 this chapter.
697 (b) Bar the access partner from performing services at one
698 or more of its specific locations.
699 (6) The commission shall adopt rules to implement this
700 section.
701 Section 7. Section 516.46, Florida Statutes, is created to
702 read:
703 516.46 Annual reports by program licensees and the office.—
704 (1) By March 15, 2021, and each year thereafter, a program
705 licensee shall file a report with the office on a form and in a
706 manner prescribed by commission rule. The report must include
707 each of the items specified in subsection (2) for the preceding
708 year using aggregated or anonymized data without reference to
709 any borrower’s nonpublic personal information or any program
710 licensee’s or access partner’s proprietary or trade secret
711 information.
712 (2) By January 1, 2022, and each year thereafter, the
713 office shall post a report on its website summarizing the use of
714 the program based on the information contained in the reports
715 filed in the preceding year by program licensees under
716 subsection (1). The office’s report must publish the information
717 in the aggregate so as not to identify data by any specific
718 program licensee. The report must specify the period to which
719 the report corresponds and must include, but is not limited to,
720 the following for that period:
721 (a) The number of applicants approved for a program license
722 by the office.
723 (b) The number of program loan applications received by
724 program licensees, the number of program loans made under the
725 program, the total amount loaned, the distribution of loan
726 lengths upon origination, and the distribution of interest rates
727 and principal amounts upon origination among those program
728 loans.
729 (c) The number of borrowers who obtained more than one
730 program loan and the distribution of the number of program loans
731 per borrower.
732 (d) Of those borrowers who obtained more than one program
733 loan and had a credit score by the time of their subsequent
734 loan, the percentage of those borrowers whose credit scores
735 increased between successive loans, based on information from at
736 least one major credit bureau, and the average size of the
737 increase. In each case, the report must include the name of the
738 credit score, such as FICO or VantageScore, which the program
739 licensee is required to disclose.
740 (e) The income distribution of borrowers upon program loan
741 origination, including the number of borrowers who obtained at
742 least one program loan and who resided in a low-income or
743 moderate-income census tract at the time of their loan
744 applications.
745 (f) The number of borrowers who obtained program loans for
746 the following purposes, based on the borrowers’ responses at the
747 time of their loan applications indicating the primary purpose
748 for which the program loans were obtained:
749 1. To pay medical expenses.
750 2. To pay for vehicle repair or a vehicle purchase.
751 3. To pay bills.
752 4. To consolidate debt.
753 5. To build or repair credit history.
754 6. To finance a small business.
755 7. To pay other expenses.
756 (g) The number of borrowers who self-report that they had a
757 bank account at the time of their loan application and the
758 number of borrowers who self-report that they did not have a
759 bank account at the time of their loan application.
760 (h) For refinance program loans:
761 1. The number and percentage of borrowers who applied for a
762 refinance program loan.
763 2. Of those borrowers who applied for a refinance program
764 loan, the number and percentage of borrowers who obtained a
765 refinance program loan.
766 (i) The performance of program loans as reflected by all of
767 the following:
768 1. The number and percentage of borrowers who experienced
769 at least one delinquency lasting between 7 and 29 days and the
770 distribution of principal loan amounts corresponding to those
771 delinquencies.
772 2. The number and percentage of borrowers who experienced
773 at least one delinquency lasting between 30 and 59 days and the
774 distribution of principal loan amounts corresponding to those
775 delinquencies.
776 3. The number and percentage of borrowers who experienced
777 at least one delinquency lasting 60 days or more and the
778 distribution of principal loan amounts corresponding to those
779 delinquencies.
780 (3) The commission shall adopt rules to implement this
781 section.
782 Section 8. Sections 516.405-516.46, Florida Statutes, are
783 repealed on January 1, 2027, unless reenacted or superseded by
784 another law enacted by the Legislature before that date.
785 Section 9. For the 2019-2020 fiscal year, the sum of
786 $407,520 in nonrecurring funds from the Administrative Trust
787 Fund is appropriated to the Office of Financial Regulation for
788 the purpose of implementing this act.
789 Section 10. This act shall take effect January 1, 2020.