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Florida could ease regulations of payday loans

Florida could ease regulations of payday loans
Posted at 1:22 AM, Jan 30, 2018
and last updated 2018-01-30 03:15:39-05

TALLAHASSEE, Fla. (AP) - Florida could ease some of the restrictions now in place for so-called payday loans.

Bills moving through the House and Senate would double the current limit on the loans from $500 to $1,000 and would allow lenders to give 60-to-90 day loans.

A Senate panel on Monday voted in favor of the bill (SB 920), even though consumer advocates said it would create a debt trap for poor people.

Back in 2001, the state cracked down on loans where lenders give borrowers money in exchange for holding a postdated check as collateral.

Existing lenders say they need to change the law because of potential new federal regulations. Sen. Rob Bradley, a north Florida Republican and bill sponsor, contends payday lenders may have to shut down without the change.

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