HB 275

1	A bill to be entitled
2	An act relating to consumer finance charges; amending
3	s. 516.031, F.S.; increasing the proportionate loan
4	amounts that are subject to descending maximum rates
5	of interest; increasing the maximum delinquency charge
6	that may be imposed for each loan payment in default
7	for not less than a specified time; revising the
8	maximum amount that a lender may impose as a service
9	charge on a borrower who gives the lender a bad check
10	in full or partial payment of a loan; reenacting and
11	amending s. 516.19, F.S., relating to penalties, for
12	the purpose of incorporating the amendment made to s.
13	516.031, F.S., in a reference thereto; providing
14	penalties; providing an effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Subsections (1) and (3) of section 516.031,
19	Florida Statutes, are amended to read:
20	516.031  Finance charge; maximum rates.-
21	(1)  INTEREST RATES.-Every licensee may lend any sum of
22	money not exceeding $25,000. A licensee may not take a security
23	interest secured by land on any loan less than $1,000. The
24	licensee may charge, contract for, and receive thereon interest
25	charges as provided and authorized by this section. The maximum
26	interest rate shall be 30 percent per annum, computed on the
27	first $3,000 $2,000 of the principal amount as computed from
28	time to time; 24 percent per annum on that part of the principal
29	amount as computed from time to time exceeding $3,000 $2,000 and
30	not exceeding $4,000 $3,000; and 18 percent per annum on that
31	part of the principal amount as computed from time to time
32	exceeding $4,000 $3,000 and not exceeding $25,000. The original
33	principal amount as used in this section shall be the same
34	amount as the amount financed as defined by the federal Truth in
35	Lending Act and Regulation Z of the Board of Governors of the
36	Federal Reserve System. In determining compliance with the
37	statutory maximum interest and finance charges set forth herein,
38	the computations utilized shall be simple interest and not add-
39	on interest or any other computations. When two or more interest
40	rates are to be applied to the principal amount of a loan, the
41	licensee may charge, contract for, and receive interest at that
42	single annual percentage rate which if applied according to the
43	actuarial method to each of the scheduled periodic balances of
44	principal would produce at maturity the same total amount of
45	interest as would result from the application of the two or more
46	rates otherwise permitted, based upon the assumption that all
47	payments are made as agreed.
48	(3)  OTHER CHARGES.-
49	(a)  In addition to the interest, delinquency, and
50	insurance charges herein provided for, no further or other
51	charges or amount whatsoever for any examination, service,
52	commission, or other thing or otherwise shall be directly or
53	indirectly charged, contracted for, or received as a condition
54	to the grant of a loan, except:
55	1.  An amount not to exceed $25 to reimburse a portion of
56	the costs for investigating the character and credit of the
57	person applying for the loan;
58	2.  An annual fee of $25 on the anniversary date of each
59	line-of-credit account;
60	3.  Charges paid for brokerage fee on a loan or line of
61	credit of more than $10,000, title insurance, and the appraisal
62	of real property offered as security when paid to a third party
63	and supported by an actual expenditure;
64	4.  Intangible personal property tax on the loan note or
65	obligation when secured by a lien on real property;
66	5.  The documentary excise tax and lawful fees, if any,
67	actually and necessarily paid out by the licensee to any public
68	officer for filing, recording, or releasing in any public office
69	any instrument securing the loan, which fees may be collected
70	when the loan is made or at any time thereafter;
71	6.  The premium payable for any insurance in lieu of
72	perfecting any security interest otherwise required by the
73	licensee in connection with the loan, if the premium does not
74	exceed the fees which would otherwise be payable, which premium
75	may be collected when the loan is made or at any time
76	thereafter;
77	7.  Actual and reasonable attorney's fees and court costs
78	as determined by the court in which suit is filed;
79	8.  Actual and commercially reasonable expenses of
80	repossession, storing, repairing and placing in condition for
81	sale, and selling of any property pledged as security; or
82	9.  A delinquency charge not to exceed $15 $10 for each
83	payment in default for a period of not less than 10 days, if the
84	charge is agreed upon, in writing, between the parties before
85	imposing the charge.
86
87	Any charges, including interest, in excess of the combined total
88	of all charges authorized and permitted by this chapter
89	constitute a violation of chapter 687 governing interest and
90	usury, and the penalties of that chapter apply. In the event of
91	a bona fide error, the licensee shall refund or credit the
92	borrower with the amount of the overcharge immediately but
93	within 20 days from the discovery of such error.
94	(b)  Notwithstanding the provisions of paragraph (a), any
95	lender of money who receives a check, draft, negotiable order of
96	withdrawal, or like instrument drawn on a bank or other
97	depository institution, which instrument is given by a borrower
98	as full or partial repayment of a loan, may, if such instrument
99	is not paid or is dishonored by such institution, make and
100	collect from the borrower a bad check charge of not greater than
101	the maximum worthless check service charge permissible under s.
102	68.065 more than the greater of $20 or an amount equal to the
103	actual charge made to the lender by the depository institution
104	for the return of the unpaid or dishonored instrument.
105	Section 2.  For the purpose of incorporating the amendment
106	made by this act to section 516.031, Florida Statutes, in a
107	reference thereto, section 516.19, Florida Statutes, is
108	reenacted and amended to read:
109	516.19  Penalties.-Any person who violates any of the
110	provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(6),
111	or s. 516.07(1)(e) commits is guilty of a misdemeanor of the
112	first degree, punishable as provided in s. 775.082 or s.
113	775.083.
114	Section 3.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.