House Advances Lending Bill that Could Harm Floridians in Financial Distress

Christie Arnold, associate for social concerns and respect life, testified in opposition to HB 1267 (Fernandez-Barquin) before the House Commerce Committee. HB 1267 and SB 580 (Gruters) would create an increase of interest rates between 6% and 18% on what are already high-cost installment loans for consumers who are often in acute financial distress.

"We continue to hear that by raising interest rate caps, chapter 516 lenders would be able to make more loans to people who otherwise would not have access to them. However, the three-tier structure could still be retained, and interest rate caps at each level could be increased more modestly, said Arnold. "In its current form, the bill eliminates the tiered structure entirely, and it contains a tremendous across-the-board increase in maximum rates, including potentially doubling rates for loans between $4000 and $25,000. This change moves consumer protection backwards for Floridians who benefit from utilizing these loans in their times of need. We oppose HB 1267 and urge you to vote 'no'." 

The committee approved the bill by a unanimous vote, and the bill is now available to be taken up by the full House. SB 580 is scheduled for its final committee of reference, Fiscal Policy.