Florida Legislature votes to ease payday loan restrictions
TALLAHASSEE, Fla. (AP) — Florida may ease some of the restrictions now in place for so-called payday loans.
The Florida Legislature on Wednesday overwhelmingly approved a bill that would double the current limit on the loans from $500 to $1,000 and would allow lenders to give 60-to-90 day loans. The legislation now goes to Gov. Rick Scott.
The House voted overwhelmingly for the bill even though consumer advocates have 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. Supporters contend payday lenders may have to shut down without the change.