Getting a payday loan in Florida is legal, but there are restrictions you need to be aware of. Before you get a loan, this is the information you need to know. It’s important that you understand the contracts that you are signing before taking out a payday loan.
What is a Payday Loan?
The way this type of loan works is you write a post-dated check to the lender. They give you money with the understanding that they will cash the check on the date that’s on the check. The date should correspond with the day you are scheduled to get paid next. Note that the interest you owe on the loan is written into the check amount and will be paid immediately.
How Many Payday Loans Can You Get in Florida?
In the state of Florida, you can only have one outstanding payday loan at a time. The loans are tracked in a database that is reported to by all lending institutions. Once you pay the loan back, you have to wait 24 hours before you can take out another one.
The loans can be anywhere from 1-31 days. You have a 60 day grace period to pay back the loan after the contract has expired. However, in order to get that extension, you’ll have to make an appointment with a credit counseling agency within 7 days of the due date of the loan. You will also need to complete the course within the grace period.
Why You Should Only Use Florida Licensed Lenders
It’s important that you look for licensed payday lenders in Florida. If you end up having a problem with the lender, you’ll be able to get it resolved faster if you’ve used a licensed lender. These businesses are accountable to the Office of Financial Regulation to keep their license.
What Are The Limitation on These Loans?
There are several limitations on payday loans. These limitations include:
- Loan amount- you are only able to borrow $500 at a time. There are no exceptions to this rule.
- Fees- the state of Florida has limited lenders from charging more than 10% of the loan amount for the fee. For example, if you borrow the full $500, you will pay no greater than a $50 fee.
- Collections- if for some reason you are unable to pay the loan on the agreed upon date, the lender cannot pursue criminal charges against you. However, they can take out a judgment against you.
If you find yourself in a bad spot and need to get a payday loan, make sure you understand the terms and conditions. Also, be aware of the rights you have if you cannot pay the loan back on time.