Florida Senate - 2021                                    SB 1478
       
       
        
       By Senator Gibson
       
       
       
       
       
       6-01267A-21                                           20211478__
    1                        A bill to be entitled                      
    2         An act relating to consumer finance loans; amending s.
    3         516.031, F.S.; prohibiting a person licensed to make
    4         and collect loans under the Florida Consumer Finance
    5         Act from charging prepayment penalties for loans;
    6         amending s. 516.36, F.S.; providing requirements for
    7         loan terms; providing an effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Paragraph (c) is added to subsection (3) of
   12  section 516.031, Florida Statutes, to read:
   13         516.031 Finance charge; maximum rates.—
   14         (3) OTHER CHARGES.—
   15         (c) A licensee may not require a borrower to pay a
   16  prepayment penalty for paying all or part of the loan principal
   17  before the date on which the payment is due.
   18         Section 2. Section 516.36, Florida Statutes, is amended to
   19  read:
   20         516.36 Installment requirement.—
   21         (1) Every loan made pursuant to this chapter must be repaid
   22  in periodic installments as nearly equal as mathematically
   23  practicable, except that the final payment may be less than the
   24  amount of the prior installments. Installments may be due every
   25  2 weeks, semimonthly, or monthly. This section does not apply to
   26  lines of credit.
   27         (2) A loan with a principal balance upon origination of no
   28  more than $4,000 must provide a term of at least 90 days. A loan
   29  with a principal balance upon origination that exceeds $4,000
   30  must provide a term of at least 12 months.
   31         Section 3. This act shall take effect July 1, 2021.