Predatory Payday Lending Practices Take Advantage of Vulnerable Consumers

Payday lenders in Florida charge consumers an average of 278% annual percentage rate. Payday borrowers often have difficulty making ends meet when they repay the loan on their next payday, and then find themselves caught in a cycle of debt. The average payday borrower in Florida borrows 7.7 payday loans in one year; more than half will borrow 12 loans.
 
These loans take advantage of the financial distress of the working poor and those on fixed incomes. The FCCB supports SB 642/HB 555 which would cap payday loans at 30% and 36% APR respectively, more aligned with comparable lending products in Florida.
 
FCCB staff expressed opposition in committee this week to SB 920 (Bradley). The measure would double the amount that could be borrowed through payday loans, and double the fees that consumers would pay. Michael Sheedy, executive director, highlighted the FCCB's concerns in a  letter to the bill sponsor.
 
FCCB supported of an amendment by Senator Gibson that was voted down, but would have capped these loans at 30% APR.