Florida Payday Loans - FAQ
Questions And Answers
1) What is a payday loan?
They are short term loans that are secured against your salary. Hence, they have to be paid back the very next time you get paid. Payday loans are regulated differently in each state, which also means they have varying interest rates depending on where you live. Some states have laws prohibiting payday loans, which is something to be aware of. In the state of Florida they are 100% legal.
2) Will I qualify?
Eligibility for a cash advance loan depends on your personal situation. As a rule of thumb, you must be over 18 and in steady employment, having held your current job for at least one month. You are generally also required to earn at least $800 in net pay per month. Finally, you must provide all contact details, including a home, work and email address.
Your credit rating is of lesser importance when applying for a loan. Hence, even those with bad credit, including bankruptcy, can be accepted. You do have to be a US resident and you must also have an active bank account for the money to be deposited into and taken out of on your repayment date.
3) How much will I be able to borrow?
The maximum amount varies depending on state laws. Additionally, those who apply for a payday loan for the first time will generally receive a smaller amount, which is based on the information that they provide during application. Our loan amounts range from $100 to $1,000.
4) What is the interest rate?
Just as the maximum amount, the interest rate comes under state law regulation. Hence, the rates vary. However, payday loans tend to have a high APR, due to the fact that they are short term loans. When you apply for your loan and are accepted, you will be told exactly what the interest rate on your loan is, and how much you will have to pay back.
5) How quickly will I get my money?
The process is very quick and easy to complete. As long as all the required information has been provided, it should take no more than 15 minutes for the loan to be approved, and 24 hours to receive your funds. If you are a returning borrower, the procedure is even quicker, and you could have cash in your account within a few hours.
6) What are the main advantages?
Payday loans have a number of distinct advantages. Firstly, they are available to people regardless of their credit history. Secondly, they are very easy to apply for and the application can be done completely online. Furthermore, since they are short term loans, repayment is usually quite easy. Although the annual interest rate is very high, the loan is repaid within just a few weeks, meaning that the actual payment is manageable.
7) How do I repay my loan?
Payday loans are short term loans that should be paid off the next time you get paid. Usually, therefore, the loans only last for about two weeks. However, there are situations where the borrower and the lender may agree to different terms.
Additionally, it is often possible to extend the loan by rolling it over. However, again, state laws do regulate whether or not extensions are possible. When you apply for your loan, you will have to provide bank details and the loan will be automatically withdrawn from your account on the agreed repayment date.
If you do want to pay your loan back early, you should contact someone in the customer service team. In some cases, you may be able to receive a refund on the interest you have paid.
8) What if I can't pay back my loan?
Some states, as mentioned, allow the loan to be rolled over, but this is not always the case. If you are in a state where this is possible, you will need to login to your online account and request for your loan to be extended. If agreed, you will usually only have to pay the interest on your loan, and the loan will effectively start again, meaning that you will have to pay the loan principle and interest at your following payday.
If you default on your loan, however, your lender will be able to use any legal means at their disposal to recover their money. Additionally, this can lead to your interest rate rising, and you will be charged other fees as well.
9) Can I apply for a loan if I already have one running?
If you already have a running payday loan, it is generally not recommended to apply for another one. However, if you are in need of another loan, you can certainly discuss this issue with your lender. It may be better to speak to the lender of your current payday loan and see whether it would be possible to increase the loan principle, rather than going to a different lender and applying for another loan.
10) Will my information be kept private?
We are a Florida-based company and we value our customers and ensure that all your data is kept private. It will not be shared with any third parties and will keep your information fully confidential. Additionally, our site is fully encrypted and powered by the latest security software.
11) Are Payday Loans Legal in Florida?
Yes, payday loans are legal in the state of Florida but come with their own state regulations that limit the amount you can borrow and how much you can be charged, among other terms.
In order to issue short-term loans of this nature, lenders must be licensed in the state and adhere to these regulations.
12) What is the Maximum You Can Borrow?
The maximum you can borrow in the form of a payday loan is $500.
Payday loans are designed to help cover small temporary financial costs until you next get paid. This limitation ensures you do not borrow more than you can handle or use the funds for other purposes.
The Florida Office of Financial Regulation warns that any lender based in Florida offering more than $500 is breaking the law.
13) How Many Payday Loans Can You Have at One Time?
Borrowers are only permitted to sign for one payday loan in Florida at any one time, regardless of whether you apply to the same lender or a different one. I.e. you cannot have one loan with Lender A and another with Lender B.
Lenders may perform checks to verify this is not the case, but it may also be your responsibility not to take out another loan with a second lender.
24 hours after you have made the full repayment on a payday loan and the account is closed, you are permitted to sign for another payday loan.
If you have missed the payday loan repayment date and are using a repayment plan or are facing collection proceedings, you are not permitted to take out a second payday loan until the original debt is settled.
14) Can I Extend or Renew My Payday Loan?
Florida law does not permit payday loan extensions (sometimes called a rollover) or refinancing (using a new loan to pay off a previous loan).
It is the borrower's responsibility to repay their loan on time and the lender's responsibility not to increase the debt via the above methods.
15) What is the Maximum Loan Term for Payday Loans?
A loan term between 7 and 31 days.
31 days is the maximum duration for a payday loan in Florida. In other words, the repayment date must fall within this time-span. The loan cannot be repaid sooner than 7 days.
Most borrowers will have received at least one payday during this time, enabling them to repay the loan as intended.
16) Are Payday Loan Interest Rates Regulated?
Payday lenders in Florida are not permitted to set an interest rate that results in a fee higher than 10% of the amount borrowed.
This is the only interest you pay if you repay on the agreed date, so it is presented more as a "fee" or "charge" than an interest rate, though it is still based on an underlying APR.
Our lenders will clearly present how much you must pay before requiring you to sign a contract.
17) What Extra Fees Can Payday Lenders Charge?
Payday lenders are also permitted to charge no more than a $5 verification fee for each loan they issue. This is on top of the interest fee discussed above.
No fees allowed under the law may be collected in advance.
18) How Do I Know if a Payday Lender is Licensed?
All of the lenders in our network are licensed payday lenders in the United States. If we connect you to a lender and you wish to verify for yourself if they are accredited in the state of Florida, click here.
19) What Happens if I Cannot Repay a Payday Loan?
If the lender cannot recover the money owed on the agreed date, you may be subject to standard collection proceedings which may include emails, phone calls, letters, and doorstep visits to request payment.
Note: If you fail to repay, they cannot charge you extra fees or interest unless a civil a lawsuit is filed and a court rules as such (a rare occurrence).
Failing to repay will have a negative impact on your credit score, however, you are entitled to a:
60 Day Grace Period: to make the repayment in good faith, on the condition that you also make an appointment with a credit counseling agency within seven days of the original due date and complete this session within the 60-day grace period.
Repayment Plan: that allows you the best chance to repay within the 60-day grace period (i.e. $10 a week etc).
If you still do not make the repayment a judgment may be held against you and highlighted on your credit report, making it harder to obtain loans and credit in the future.
After 5 years neither the lender or a collection agency is permitted to pursue collection due to the statute of limitation. This doesn't mean the judgment will be removed from your credit report, just that nobody will be seeking you for payment.
20) Can I Get a No Credit Check Payday Loan?
While it is not technically illegal to issue a payday loan in Florida without a credit check, most lenders will carry one out to verify your identity and ensure a risk-free agreement. Those that do offer no credit check payday loans often charge the maximum fees.
21) Loan Terms and Conditions
Prior to requiring you to sign the agreement, the lender must provide you with a copy of the terms and conditions and clearly outline the date of the loan, the amount, the loan term, and interest.
The agreement must also include the name and address of the lender and the lenders business office, and the name of the representative who signed the agreement on the lender's behalf.
Last updated: Sep 6, 2018