Payday Loans in Florida:
Nickname: The Sunshine State
Population: 21.3 million
Florida’s, probably, counted in the list of the sunniest states on the North-American continent. Thus, it’s popular among the tourists. Why feel surprised? The climate of this land, popular resorts make Florida a breathing American Dream. A place that gives freedom from winter cold, making people free from cares and woes.
Though, not everyone is carefree in Florida and lenders offer payday loans in Florida quite actively. The tone of these offerings lulls consumers, promising them a quick solution for their money troubles. That sounds so good and easy. And too many Floridians has fell for the sound of this tune. Or, more precisely fall for it again and again. So, their life turns into an endless stroll between shops offering payday loans.
We are not going to argue; sometimes this decision really looks like the only escape possible at the moment. Particularly, in the cases when a person cannot go to the bank or do not have a credit card. Especially, when there is no such card among your possessions. If you felt astonished reading the last sentence, don’t be! Because the statistics tells us that while the cards are pretty popular and convenient cash substitute, not everyone has one. In addition, 19 million among American citizens simply cannot hope for a credit from the bank.1
We are speaking of those who don’t have a credit history long enough or good enough to get sufficient scores. As a rule, these people belong to the most vulnerable social groups i.e. those payday lending targets at. And in some cases they don’t even have time to seek alternatives and to compare options. Don’t forget, that lenders themselves promote their service as quick and comfortable method to cover short-term expenses.
THE HISTORY OF PAYDAY LOANS IN FLORIDA. WHEN IT ALL STARTED?
The answer to the question can be different. If we’re speaking about the borrowing – people learned to borrow at the dawn of the humankind. Payday loans Florida appeared much later, but it’s just a modification of good old borrowing our ancestors practiced. In all eras and centuries the poor have made debts from the more prosperous neighbors. They don’t even need money for that. Tools, seeds or more modern precious stuff can be lent as successfully as money. Cash is just the most convenient for this purpose, not the only one.
Let’s get back to the topic; small term loans similar to modern appeared somewhere at the end of 1880-s. Think today’s online loans Florida are cruel and make only lender-side benefits? What would you say when learn the following fun fact? Back in 19th century a debtor taking a payday loan had to give their next salary to repay a small sum. Not only was it an inevitable debt trap, but also a huge risk. There were no laws about those loans, and the lenders were often criminals.
It wasn’t until the middle of 20th century, that people got access to the small loans in modern meaning. It happened when the legislation about financial sphere become more liberal. The evolution of lending began. In 1950-s the first credit card was introduced to America.
But we didn’t know about payday loans officially, until 1990-s. At that time the first payday storefronts emerged. Soon the government admitted the need of regulations of this kind of service. And little by little, state by state official acts and bills passed. In Florida it happened in 2001. Online payday loans in Florida appeared in abundance whet the Internet became evolved enough.
WHY CHOOSE PAYDAY LOANS IN FLORIDA? ADVANCES IN A NUTSHELL
Long story short; online payday loans Florida lenders promote do have advances. It would be just dishonest to say they don’t. The problem is; the advantages payday loans Florida have are often outnumbered by disadvantages
Speaking about advantages. You can be sure, any advertisement, any lender in person can sing songs about how wonderful payday loans are. And as we have said, it’s true. Payday loans are by their design a thing created to be comfortable at this very moment. To be comfortable decision for those who think, that all the others doors are closed.
What is a payday loan? It’s a certain amount of finance that you can take temporally from a lender. On the condition, of course, that you will repay the debt after some time. The additional rates you pay with the initial sum are your payment for the service. The thing with this kind of loans is that the term is, on average, two weeks. And average rate is $15 for $100. Meaning; the guy give you $100 to get back $115 in two weeks.
Sounds great, right? Not to mention, it’s quick to get an approval and obtain money. You can do it online even! Payday loans Florida no credit check, no headache or fear of denial. Perfect recipe to exterminate an annoying financial problem.
Where’s the pitfall? In fact, there are some. First of all, no one take a $100 to return $115. An average transaction for an American payday lender is $375. The rates are $56,25. Which means a customer pays $431.25 at once. Payday loan life term is two weeks. The major part of the costumers has low incomes, and for them to give $430 means to lose a half of wage.
GUIDES TO PAYDAY IN FLORIDA CITIES; POSSIBILITIES ARE EVERYWHERE
According to the center of Responsible Lending there are about 1,100 payday lending offices in Florida as of 2015. This number is really alarming. To understand that, just compare it with the density of Starbucks. There are only 642 Starbucks points in the state2. In other words, you have 458 less chances to get a cup of coffee than to receive a loan funds in Florida.
So, as far as you understand, this type of credit service is a true plague for the state. And even though the Florida impact to the national budget is huge, the problem is very real. And the odds that a Floridian will fall a victim of dishonest predators from lending business is very high. Not that the situation in other states differs much – being in debt is a common American problem. On the contrary, payday regulations in Florida are tougher, in comparison to other states. And still, it is a problem, taking into account, the unemployment rate in the state. It is 3.5%3. That doesn’t differ much from the US rate. But in some cities of Fl it’s significantly higher.
That is why the residents of these cities should know the risks. After all, Florida people deserve something better that cycling in a debt trap.
Payday loans in Tallahassee, Florida
The capital of the state is a wonderful city. Beautiful and friendly and has quite developed infrastructure. There are a lot of places to go and see. A lot of things to do. Tallahassee is a nice place to learn and to live in. No one gonna argue that. But here are some warning facts about city’s economy.
For example, Median household income in the city is $42,4184. It seems not that low, but this number is significantly smaller than average US indices.
What about the unemployment rate? It is 2.8%3. Seems like city’s administration can be proud of this fact, but at the same time, 27.1% of residents live in poverty4. By the way, average credit card balance for a Tallahassee resident is $6,1925. It’s not that bad, but nonetheless, there are many potential and actual customers of payday loans in Tallahassee, FL.
Payday loans in Jacksonville, Florida
If you want to see a city busting with life and energy – go to Jacksonville. The most populated city of Florida will not disappoint you. And every winter in becomes even more populated, because of tourists. They find their touristic heaven in Jacksonville every year.
Jacksonville is not just a checkpoint for travellers running away from freeze, but also a port, a cultural and financial center of the state. You will be right to assume, that city’s income per year is high. Thus, who can use payday loans in Jacksonville FL? The question is fair, considering that Median Jacksonville household income is $50,5554. But Average Credit card debt among residents is $6,2005 and 16.4%4 of them are struggling with poverty.
Payday loans in Miami, Florida
Miami is, probably, one of the richest cities of the USA and the world. It has marvelous service, road and entertainment infrastructures, which are attractive for tourists. Not just for them, of course, but also for those wanting to move to Florida.
Let’s be honest, it’s a bit weird to speak about payday loans in Miami, FL seems to be too successful to use them. But while the unemployment rate is not high in Miami, just 2.9%3, median household income doesn’t reach even the $35,000 mark4. According to Census US it is $33,999. And more than a quarter of residents can be defined as poor. Moreover here; CNBC acquisition tells us that residents of Miami have the second highest Average Credit Card Debt in the States5. That all shows that for Miami is a heaven not only for tourists, but for lenders too.
Payday loans in Tampa, Florida
Just as in any other state city payday loans in Tampa, FL do flourish. Though, not only creditors are flourishing in this beautiful city. Residents and guests of Tampa always have a lot of alternatives to spend a bright weekend. Museums are waiting art fans, parks are green and attractive for rollers and those who likes unhurried walks. Not to mention sunny beaches where you can just bathe in the sun enjoying the life.
Tampa has an image of problem-free city, but there are problems in reality. Like, for example, those 20% of poor population, who are good targets for payday lenders4.
Payday loans in Orlando, Florida
“The City Beautiful” they call Orlando. And it is true, the city is really beautiful. It is a place where the researches and technology move forward to move the science in the world.
But even the cleverest of us can manage their finances badly and have debt charges. That is why you can easily find that payday loans in Orlando, FL are in high demand. That’s only logical, in view of poverty percent 19.1%4 and average credit card debt $5,9845.
Payday loans in Hialeah, Florida
Speaking of Hialeah and Milford, they don’t have as loud popularity as Miami, for example. But this doesn’t mean that you cannot find payday loans in Milford, FL lenders prefer to stay in contact with clients. Especially, considering the fact that Household Median Income in Hialeah is $31,012 and the poverty level is higher than 25%4.
AN ANALYSIS OF PAYDAY LOANS IN FLORIDA
Speaking of the influence payday loans in Florida have on state’s economy, let’s study the information from the Responsible Lending Center. Their Report requires undivided attention of any reader considering payday loans as good choice.
As we have said, there average rate for the payday loan in America is 15%. And for many of us it doesn’t look like a problem. Yes, it’s hard to give a half of the week wage as a payoff. (We are speaking about that average $375 loan). But it’s not unaffordable, if you take just one loan, right?
In fact, it is unaffordable. That is why 83% of all borrowers in Florida fall into a debt trap2. They are those goldmines, lenders make profit from. Do you want to know? How profitable this money making is? Very profitable, let me assure you! In the period from 2005 to 2016 payday lenders milked approximately $2.5 billion out of our Flowering land2. It is just fees, by the way. Reminder; Florida is not the only one state to drain out.
Probably, the worst part in this entire story is that this loans drain money from most vulnerable social groups. First of all, these are people of color, single or divorced parents with underage children, elderly people. Students are also at risk as many of them don’t have credit scores to get a loan in the bank.
The process works flawlessly. The customer hit a hard spot, goes for a loan and gets the money with little time to repay. Customer defaults on a loan and pay fees to extend the term or makes an agreement to roll it over. Cannot repay again and takes another loan. The minimum number of loans, this way, reaches 7 per year2.
FLORIDA PAYDAY LOAN RULES AND REGULATIONS
As we have informed you above, the first law about Florida cash advance appeared in 2001. It has remained untouched until recently. In 2006 though, Talent-Nelson Amendment was signed by the president. It only applies to the active militaries.
More important, that in July, 2019 the Law (SB 920) about Deferred Presentment Transactions will take effect. It changes much in Florida payday loans system online or offline doesn’t matter. Until then, remember, that every lender should have a license, according to the Fl. Stat. Ann. § 560.402 et seq6. A customer can check if the lender is licensed on the site of Florida Office of Financial Regulation. There you also can write a complaint about any of illegal lender’s actions.
FLORIDA RATES AND TERMS
Everything concerning Florida payday loans is simple at the moment. The maximum size of the principal is $500. The rate cannot be higher than 10%. Plus a fee for loan verification that is no more than $5. The terms can vary from one week to 31 days. Like that; simple and not expensive. But when you calculate the APR of the loan with such rates, it turns out to be 304%. You’ll be surprised, but Florida has cash advances cheap enough, in comparison to other states. In some American territories APR can be like 395%.
The point is that the mentioned law changes the situation with the maximum amount and term. Since 1st of July lenders have rights to give loans up to $1000 for 90 days.
FLORIDA PAYDAY LOAN RESTRICTIONS
Strictly speaking, the list of restrictions online payday loans in Florida go under is quite short:
- The lender cannot work without a license;
- Cannot make the rates more than 10%;
- Cannot give more than $500;
- Cannot give a loan without a written contract with a client’s sign on it;
- Cannot arrange the contract articles in a way limiting the clients’ rights.
Lender neither can make criminal actions towards the customer, nor threat to make them.
In addition, every loan should be documented in a special database. And one more thing; a lender cannot offer a rollover as they are banned in Florida.
In their turn, a customer cannot have more than one loan at time. Meaning, you must pay your loan fully, before taking a new one. And there should be a 24-hours gap between two loans.
Consumer Protection in Florida
In the view of that 83% trapped in debt, we can assume that consumer protection doesn’t work well enough with online payday loans in Florida. The only group more or less protected is the military. Note, that we mean the active military not retired or discharged. But for active militaries the APR is limited for 36%.
It’s a shame that the same limit does not apply to the rest of consumers, but the fact is the fact. The only protection measures civilians and veterans have in this field are:
- The possibility to complain to Florida Office of Financial Regulation;
- The limit on the number of active loans;
- The cooling off time (very short, by the way).
Additionally, the lender is obliged to give a defaulted debtor 60 days of grace period. On the condition the debtor informs the lender of inability to pay in time.
HOW DO I APPLY FOR A PAYDAY LOAN IN FLORIDA FROM MYPAYDAYLOANCASH?
First of all, it is OK if you are considering taking payday loans in FL state. We understand perfectly, that everyone can meet an obstacle one day. If it is your decision we will help you to find online cash advance from Florida territory on most profitable terms. Just visit our website and enter how much you need. Than give us your contact email and wait. We will find the most suitable offers for you.
We can guarantee that your personal information will be secure with us. But, please, remember; to use our services you should be at least 18 years old and an USA resident.
THE FINAL THOUGHTS ABOUT PAYDAY LOANS IN FLORIDA
As anything else in this world, online payday loans in cities of Florida can be a helping hand in tough situation. But use it unwise and they immediately turn into a cord on your neck. We don’t advice anything to guests of Hollywood or Miami Gardens or West Palm Beach. Anyone can make decisions on their own. Naturally, when a person living in Palm Bay, Port St. Lucie, Miramar need a payday loan they will find it easily in city limits and, maybe even not far from their home. Neither it is a problem for Cape Coral, Clearwater, Fort Lauderdale or Coral Springs. And more than sure, we will gladly help people from Pembroke Pines or Gainesville.
But we still ask each and every of our potential clients to think twice before taking a loan. It’s very easy to take someone’s money, and to return your own is hard. So, stay financially safe as long as you can.
- US Consumer protection financial bureau. “Who are the credit invisibles? How to help people with limited credit histories” Consumerfinance.gov. Accessed June 25. https://files.consumerfinance.gov/f/documents/201612_cfpb_credit_invisible_policy_report.pdf
- Center for Responsible Lending. “Perfect Storm: Payday Lenders Harm Florida Consumers Despite State Law”. responsiblelending.org. Accessed June 25. http://www.responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_perfect_storm_florida_mar2016_0.pdf
- US Department of labor. Florida. bls.gov. Accessed June 25, 2019 https://www.bls.gov/eag/eag.fl.htm
- US Census Bureau. www.census.gov. Accessed June 25, 2019 https://www.census.gov/quickfacts/FL
- “These US cities have the highest credit card debt”. www.cnbc.com. Accessed June 25, 2019 https://www.cnbc.com/2018/02/06/these-us-cities-have-the-highest-credit-card-debt.html
- Online sunshine. “Regulation of trade, commerce, investments, and solicitations”. www.leg.state.fl.us. Accessed June 25, 2019 http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0560/Sections/0560.402.html
- US Census Bureau. “Household Income:2017”. Census.gov. Accessed June 25, 2019 from https://www.census.gov/library/publications/2018/acs/acsbr17-01.html
- Average Credit Card Debt in America: June 2019 www.valuepenguin.com. Accessed June 25, 2019 from https://www.valuepenguin.com/average-credit-card-debt