©2024 The News Service of Florida
The Florida House on Monday overwhelmingly passed a bill that could lead to borrowers paying higher interest rates on consumer-finance loans.
House members voted 104-10 to approve the bill (HB 1347), sponsored by Rep. Robbie Brackett, R-Vero Beach.
A similar Senate bill (SB 1436) has moved through committees and is positioned to be considered by the full Senate.
Under current law, consumer-finance loan companies can charge 30 percent annual interest on the first $3,000 of principal amounts; 24 percent on amounts between $3,000 and $4,000; and 18 percent on amounts between $4,000 and $25,000.
Under Brackett’s bill, they could charge annual interest rates up to 36 percent on the first $10,000 of principal amounts; 30 percent on amounts between $10,000 and $20,000; and 24 percent on amounts between $20,000 and $25,000.
Supporters have argued that the changes would help attract more consumer-finance lenders to the state.
They have said that could provide alternatives for consumers, who now might have to turn to online lenders that charge far higher rates.
But opponents have questioned the possibility of higher rates for borrowers who often cannot get bank loans.
Gov. Ron DeSantis last year vetoed a bill that would have set an across-the-board maximum annual 36 percent rate.
In vetoing it, DeSantis said increased rates “may result in additional indebtedness and could exacerbate the pinch already being felt due to federal government-induced inflation.”
