Payday Lenders in Florida

Payday Loans are Legal in Florida

Beware of predatory lending

Payday Lenders in Florida

Payday loans serve as a form of short-term credit, primarily intended for individuals who require additional financial resources temporarily due to personal circumstances and are a popular solution for those who require immediate cash.
According to recent statistics, more than 7 million payday loans were taken out in Florida per year, with an average loan amount of $375 and an average APR of 304%.These small loans come with a quick repayment schedule, usually due on the borrower’s following payday. Florida regulates them, and lenders are bound to comply with the established rules and regulations. Payday loans can offer valuable assistance to those in need of short-term credit. However, it is essential for borrowers to fully comprehend all the conditions related to the loan to make informed decisions.
Finding legitimate payday loans in Florida can be a daunting task, with over 1,100 payday lending storefronts operating in the state, offering diverse options, it can be challenging to discern the best one. Fortunately, by researching the lender’s reputation and comparing different lenders’ offers, you can ensure a safe and reliable payday loan. Begin by exploring their reputation – if the lender has an overwhelmingly negative response online, this could indicate their untrustworthy service. Take the time to read reviews, ask friends for recommendations, and verify their credentials to ensure a positive borrowing experience.

Payday Loan Laws

Florida’s regulations on payday loans govern the stipulations and prerequisites for these short-term credit agreements, putting constraints on the sum that borrowers are eligible to receive and mandating payment periods. Lenders are obligated to furnish the borrower with a detailed breakdown of all fees and loan terms before signing the agreement. Additionally, all borrowers must be entered into the Deferred Presentment Transaction System when they take out a payday loan and lenders must check the system before every transaction. This guarantees that they do not receive more than one loan at a time. The State of Florida has several other pieces of legislation that govern payday loans:

Loan Terms and Conditions

Maximum loan amount: $500 (single payment)/ $1000 (installment)

Maximum Interest Rate: 391%

Minimum loan term: 7 days (single payment)/ 60 days (installment)

Maximum loan term: 31 days (single payment)/ 90 days (installment)

Number of rollovers allowed: None

Finance Charge: $5 plus 10% of loan amount

Legal action: 5 Years

Certified Payday Lenders in Florida

Company Name Company score License Status
Big Picture Loans, LLC 7.8 Valid
Populus Financial Group, Inc. 7.6 Valid
CNG Financial Corporation 7 Valid
Mobiloans, LLC 6.5 Valid
Kashia Services 6.3 Valid
DFC Global Corp. 5.3 Valid

History of Florida Payday Loans

The history of payday loans in Florida is characterized by poor regulation and high-interest rates. During the 1990s, many payday lenders offered loans that exceeded the state’s 18% usury limit, reflecting the inadequate regulations at that time. In 2001, the Deferred Presentment Act was passed to regulate and bring order to the industry, but its practices failed to improve the situation. In 2018, Florida’s House and Senate passed the Deferred Presentment Transactions Law (SB 920), allowing installment payday loans up to $1,000, repayable within 60 to 90 days. The law aimed to reduce the fees paid by Floridians, which amounted to $306 million on $3.09 billion borrowed between July 2016 and June 2017. However, industry opponents argue it will only increase lender profits and harm customers.

How to file a complaint

The Office of Financial Regulation (OFR) accepts complaints concerning potential fraud or misconduct related to payday loans. Upon receipt of a complaint, they will review the information provided and look at any other complaints to determine if the issue is in its jurisdiction. If necessary, the OFR may contact the complainant for additional information. All complaints are recorded and analyzed to identify patterns of potential wrongdoing.

Florida Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Getting out of payday loan debt is challenging but possible. The key is understanding the terms of your loan and creating a budget that includes the repayment amount. Contact your lender and ask if extended repayment plans or modifications might help ease debt payments, or seek the services of a credit counseling agency that will work to craft repayment plans that fit within your budget. Be wary of debt settlement companies offering quick fixes with high fees. They may not be legitimate – ultimately, the key is staying the course with repayment and refraining from taking out new payday loans.

Types of Quick Loans in Florida

Alternatives to Payday Loans in Florida

Personal Loans

Personal loans are an attractive solution for borrowers in Florida who require funds for various reasons such as debt consolidation, home improvements or unexpected expenses. Since these unsecured loans don't require collateral security they can be used however is best suits you. Borrowers with good credit may be eligible for lower interest rates and better terms. Personal loans typically have fixed interest rates and set repayment periods, which can make budgeting and planning easier. But borrowers should also be wary of things like origination fees or prepayment penalties that can add significantly to the total cost of their loans.

Bridge Loans

Bridge loans are short-term loans that are used to bridge the gap between two financial transactions, such as the sale of a property and the purchase of a new one. In Florida, bridge loans are commonly used in the real estate market, where buyers may need to act quickly to win the bid on a new property while waiting for the sale of their current property to close. Bridge loans typically carry higher interest rates and fees due to their short-term nature and higher lender risk. Borrowers should carefully assess both costs and risks before borrowing one and create a repayment strategy in place in order to repay it as quickly as possible.

Home Equity Loans

Home equity loans allow homeowners to use the equity in their home as collateral to borrow against. Equity can be defined as the difference between its current market value and outstanding balance on a mortgage loan contract. In Florida, home equity loans are commonly used for home improvement projects, debt consolidation, or other major expenses. Home equity loans typically have fixed interest rates and set repayment periods, which can make budgeting and planning easier. However, borrowers should be aware that if they are unable to repay the loan, they risk losing their home. Interest rates and fees on home equity loans can vary depending on the lender and the borrower's credit history.

Bad Credit Loans in Florida

Florida bad credit loans cater to borrowers with poor credit scores or limited credit histories. Lenders charge higher interest rates and fees on these loans, and the amount borrowed may also be lower due to the higher risk involved. Secured and unsecured loans are available, with collateral required for secured loans. Borrowers should research and compare terms and fees from different lenders before borrowing, as costs of such loans can be significantly higher than traditional loans. Proper evaluation of loan terms, timely payments, and responsible use of credit can help rebuild credit scores over time.

Florida Small Business Loans

Small business loan options in Florida:

  • SBA loans: Low-interest loans backed by the Small Business Administration that can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
  • Business lines of credit: Loans that provide businesses with a line of credit they can draw from as needed, with interest only paid on the amount borrowed.
  • Equipment financing: Loans that allow businesses to borrow against outstanding invoices, providing cash flow for operations.
  • Invoice financing: Loans that allow businesses to borrow against outstanding invoices, providing cash flow for operations.
  • Merchant Cash Advance: Loans that provide cash upfront in exchange for a portion of future sales..

VA loans in Florida

VA loans are loans that are available to veterans and active-duty service members, and are guaranteed by the Department of Veterans Affairs. In Florida, VA loans are commonly used to purchase a home or refinance an existing mortgage. VA loans typically offer lower interest rates and more flexible requirements than other types of loans, due to the government guarantee. Borrowers with VA loans may be able to finance up to 100% of the home's value, with no down payment required. It's important to work with a lender who is experienced in VA loans to ensure that you get the best terms and benefits available.

Florida Student Loans

Many options are available to Florida students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Florida Bright Futures Scholarship Program: Merit-based scholarships for Florida high school graduates who meet certain academic and community service requirements.
  • Florida Student Assistance Grant (FSAG): A need-based financial aid program offered by the state of Florida to eligible undergraduate students who demonstrate financial need.
  • Access to Better Learning and Education (ABLE) Grant: Need-based grants for Florida undergraduate students attending eligible private, non-profit colleges or universities in Florida.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Florida Income Information

The recently released 2021 U.S. Census reports show Florida having a median household income of $61,777, somewhat lower than the national median of $70,717. The Sunshine State has a diverse economy with a plethora of income sources. Notable industries include tourism, healthcare, finance, and agriculture. In addition to traditional forms of employment, many Floridians supplement their income with small businesses, freelance work, or investments. The state also has a lower cost of living than many other states, which attracts retirees and those seeking affordable housing. Florida’’s median household income varies widely by county, with St. Johns County being the highest at $88,794, and Glades being the lowest at $38,088, the state’s poverty rate was 13.1% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 18, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Florida. Accessed on April 18, 2023.

Florida Payday Lender Complaints

Below are trends associated with some payday lenders in Florida, as reported to the Consumer Financial Protection Bureau.
Company Name Count
Big Picture Loans, LLC 32
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 19
CNG Financial Corporation 14
Mobiloans, LLC 13
Kashia Services 13
DFC Global Corp. 9
Total Complaints 415

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 18, 2023.

Most Common Issues

Complaint type Count
Unexpected fees or interest 108
Struggling to pay loan 99
Received loan didn’t apply for 39
Problem with payoff process 34
Can’t contact lender 31

What are the main reasons residents of Florida apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%

Payday Lenders by City

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Florida, you will need to provide identification, proof of income, a bank account, Social Security number, and contact information

Can I cancel my payday loan?

You can cancel a payday loan in Florida within one business day without incurring any additional charges or fees by contacting the lender and providing written notice of cancellation if required.

Can a payday loan lender garnish my wages?

Yes, a payday loan lender can potentially garnish your wages in Florida with a court order. They must first obtain a judgment against you for the unpaid debt, and wage garnishment orders are subject to certain limitations.

Can spouses have separate loans?

Yes, spouses can have separate loans in Florida, as Florida is a common-law state which allows for separate property ownership, including separate debts and liabilities, for each spouse.

When will I receive my funds if I am approved for a payday loan?

If approved for a payday loan in Florida, you can typically expect to receive your funds on the same day or the next business day, depending on the lender and your bank’s processing times.

What happens if I can’t repay my payday loan on time?

Failing to repay your payday loan on time in Florida may result in extra charges, legal action, and potential harm to your credit score, so it is crucial to promptly communicate with the lender to discuss alternative repayment options or potentially negotiate a repayment plan or extension on the loan.

When could I apply for another payday loan?

There is a 24-hour cooling-off period before you can take out another payday loan.
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