Payday loans Florida

Payday Loans in Florida: $500 cap, a database, and a 60-day grace period

Florida payday loans are legal and among the more tightly regulated in the country. The state caps the loan at $500, limits the fee, allows only one loan at a time through a real-time database, and — uniquely — gives borrowers a free 60-day grace period if they can't repay. Here's how it all fits together.

Is payday lending legal in Florida?

Yes. Florida calls them "deferred presentment transactions," and they're governed by the Florida Deferred Presentment Act. Lenders must be licensed by the Florida Office of Financial Regulation (OFR), the state agency that licenses lenders, runs the statewide loan database and handles consumer complaints. Borrowing only from an OFR-licensed lender is the simplest way to know your loan follows Florida's rules — and we match you only with licensed lenders.

How much can you borrow? Up to $500

A standard single-payment Florida payday loan is capped at a $500 face amount. Florida also offers a newer installment payday product that allows up to $1,000 repaid over 60 to 90 days in installments — useful if you need a little more breathing room. Either way, the single-payment loan most people mean by "payday loan" tops out at $500.

The fee: 10% plus a $5 verification charge

Florida caps the fee at 10% of the amount borrowed, plus a $5 verification fee that funds the statewide database check. On a maximum $500 loan, that's $50 (10%) plus $5, for a total cost of $55. There are no other add-on charges permitted on the basic loan.

Loan term: 7 to 31 days

A single-payment Florida payday loan must run for a minimum of 7 days and a maximum of 31 days. The term is generally tied to your pay cycle. The minimum-7-day rule stops lenders from writing ultra-short loans that inflate the effective APR even further.

One loan at a time — the statewide database

Florida enforces a strict one-loan-at-a-time rule through a real-time statewide database. Before any lender can issue a payday loan, it must check the database; if you already have an outstanding payday loan anywhere in Florida, you can't take another until it's repaid. There's also a mandatory 24-hour cooling-off period after you repay one loan before you can take the next. Together these rules make the kind of multiple-simultaneous-loan trap seen in unregulated states essentially impossible in Florida.

APR example: about 304%

A $55 charge on a $500 loan over a typical 14-day term is roughly 304% APR. Over the maximum 31-day term, the same fee works out to about 137% APR. It's still a high-cost product, but Florida's fee cap keeps it well below the 600%+ APRs common in states with no cap.

The 60-day grace period: Florida's standout protection

This is the feature that sets Florida apart. If you can't repay on the due date, Florida law gives you a 60-day grace period at no additional cost, as long as you:

• Contact the lender before the loan's due date to request the grace period;
• Complete an appointment with a consumer credit-counseling agency during those 60 days.

During the grace period the lender cannot charge additional fees or interest, and cannot pursue you for the returned payment. It's a built-in off-ramp designed to break the rollover cycle — but you must ask for it in time. Because Florida prohibits true rollovers, this grace period is the proper way to get more time.