Florida Payday Loan: Rules, Loan Term, and Repayment

A few years ago, there was no such concept of a payday loan. Banks always offered those conventional security based loans for customers who need some money for emergency usage. However, now the scenario is different. In fact, now borrowers are eligible for a payday loan without even having a checking account. With new rules and regulations in place, payday loans can be approved in a day or two. This is certainly a great option for many borrowers who want some money in an emergency. However, lenders also follow some rules before approving the payday loan.

Rules and regulations:

Payday loans are a boon for many. After all, many borrowers receive cash instantly in their account as soon as the loan is approved. Whether you need some money for emergency car repair bill payment or to clear a medical bill, this loan will allow you to obtain instant cash. Of course, each borrower needs to meet the basic criterion of payday lenders. The first rule of approval is that borrower should be employed with regular income. Second rule is that the borrower should meet the legal age for receiving the loan as per the state guidelines. As a Florida resident, one should be of at least 21 years of age to receive Florida payday loans.

Some lenders also ask the citizens of the United States to own a valid checking account. However, a number of banks in Florida now allow borrowers to get a loan without this last requirement. In case, borrowers don’t have a checking account, they can provide information of their prepaid or debit card that feature a direct deposit option. In this case, the approved money will be credited on your card of your saving account so that you will earn a payday loan.

Although payday lending is quite common and legal in Florida, there are some strict regulations and limitations as well. In case, you obtain the loan from an out-of-state lender over the phone or telephone, then you may have to follow certain state rules too. Here are some tips and information about Florida Jacksonville payday loans.

Always find a Florida Licensed Lender:

It is always advised to find a licensed lender in Florida in order to find the best loan structure in Florida. When you deal with a licensed lender, the lender will tell you in detail about all state rules and payday loan basics. Whether you are opting for Miami payday loans or Tampa payday loans, the same rule applies for the whole state. Also, the licensed lenders in Florida always comply with the state laws and regulations. In case, you have any problem with the lender, you can always file a complaint and state officials will assist you. However, if you choose a non-licensed lender in Florida, then state officials will not be able to take action in case there is any problem. The same rule applies for out-of-state lenders as well.

Limitations on Payday Loans in Florida:

Although a number of lenders offer payday loans in Florida, there are some limitations of payday lending in this state. Every lender in this state has to follow the basic lending rules by offering only a fixed amount of the loan as per the specified rule. Lenders will also have to take the borrower’s credit history into consideration. If the borrower has some outstanding loans, then they have to follow some other procedures to offer them payday loans.

Additional Charges:

The state of Florida has a specified length of the loan term for payday loans as well. Based on the term, borrowers will be charged fees and fines if they don’t meet the repayment term specified by the lender. Also, the lenders have the right to follow a strict collection process if borrowers don’t pay on time. As per the state rule, no lenders in the state of Florida can offer payday advances that exceed $500. There are no exceptions for the amount of loan for payday loans.

Loan term:

Basically, the loan term for payday loans in Florida is a 14-day term. If the lender is not permitted to rollover the loan as per the law, then the borrower has only 14 days to pay back. However, the entire length for repayment can be up to 31 days as per the state law. If you are unable to pay, you will have to bear some additional charges and interests for the payday loans.

Grace period:

Each borrower is eligible for a grace period of 60-days as per the law. In case, you are unable to pay back the loan during the specified period of time, the state law of Florida gives you the advantage to extend the repayment period for up to 60 more days. However, borrowers will have to make an appointment with the credit counseling agency to get this benefit of grace periods. It is always advised to repay the debt in time to avoid any additional fees.