Legislation Increasing Interest Rates would Escalate Burden for Borrowers

HB 1347 (Brackett) and SB 1436 (Burton) would raise interest rates on consumer finance loans in a tiered system, adding to the burden of borrowers. Proponents argue these loans remain a better alternative than those available online that originate in other states. 
Tammy Fecci, FCCB's associate for life and dignity, sent a letter to Representative Brackett, and a letter to Senator Burton, outlining concerns with the legislation. "For many years, the Florida bishops have supported legislative proposals to lower interest rates on small-dollar loans at the state level," wrote Fecci. "Specifically, we support a 36% rate cap (inclusive of fees) on payday loans." 
Instead, these bills would authorize increased interest rates on even larger consumer finance loans up to $25,000. "Such a significant increase in the interest rate completely overwhelms any arguable benefits to the consumer," noted Fecci. 
Both the Senate and the House bills have passed their first committee of reference.