HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1347 Consumer Finance Loans
SPONSOR(S): Commerce Committee, Brackett
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1436
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 16 Y, 0 N Fletcher Lloyd
2) State Administration & Technology 11 Y, 3 N Perez Topp
Appropriations Subcommittee
3) Commerce Committee 16 Y, 0 N, As CS Fletcher Hamon
SUMMARY ANALYSIS
The Florida Consumer Finance Act, ch. 516, F.S. (Act), prohibits businesses from making consumer finance
loans unless first authorized to do so under the Act. Under the Act, licensed lenders are allowed to make
secured or unsecured loans up to $25,000 with a tiered interest rate structure, such that the maximum annual
interest rate allowed on each tier decreases as principal amount increases:
 30% per annum, computed on the first $3,000 of the principal amount;
 24% per annum on that part of the principal amount exceeding $3,000 and up to $4,000; and
 18% per annum on that part of the principal amount exceeding $4,000 and up to $25,000.
The Act requires that, at the time of applying for a license, the applicant pay to the Office of Financial
Regulation (OFR) a nonrefundable biennial license fee of $625. Other than applications to renew or reactivate
a license, applicants must also pay a nonrefundable investigation fee of $200. Additionally, the Act prohibits
licensees from applying delinquency charges until a borrower has been in default for 10 days.
The bill:
 Provides a definition for the term “branch;”
 Prohibits the operation of a branch that makes consumer finance loans without first obtaining a license;
 Requires an application fee of $625 to be paid to OFR for each branch application filed;
 Increases the maximum interest rate and the amount of principal for the tiered interest rate structure,
such that the tiered structure will be as follows:
o 36% per annum, computed on the first $10,000 of the principal amount
o 30% per annum on that part of the principal amount exceeding $10,000 and up to $20,000
o 24% per annum on that part of the principal amount exceeding $20,000 and up to $25,000;
This yields an allowable maximum interest rate for the following loan amounts:
Approximate Maximum Interest Rate
Loan Amount
Current Proposed
$5,000 26.4% 36.0%
$10,000 22.2% 36.0%
$15,000 20.8% 34.0%
$25,000 19.2% 31.2%
 Changes the 10-day rule for a licensee applying delinquency charges to 12 days;
 Requires licensees that provide assistance programs during a disaster to report to OFR details of such
assistance programs;
 Requires licensees to offer a credit education program to borrowers at the time a loan is made; and
 Requires licensees to annually submit to OFR reports of certain information, which OFR may publish in
a report after anonymizing and consolidating the data for all licensees.
The bill has a negative, likely insignificant, fiscal impact on state government, no fiscal impact on local
government, and an indeterminate fiscal impact on the private sector, both positive and negative.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Florida Office of Financial Regulation (OFR) is responsible for all activities of the Financial
Services Commission (Commission) relating to the regulation of banks, credit unions, other financial
institutions, finance companies, and the securities industry.1 OFR’s Division of Consumer Finance
(Division) licenses and regulates non-depository financial service industries and individuals, and
conducts examinations and complaint investigations for licensed entities to determine compliance with
Florida law.2
The Florida Consumer Finance Act, ch. 516, F.S. (Act), prohibits individuals and entities from engaging
in the business of making consumer finance loans unless first authorized to do so under the Act. 3 A
consumer finance loan is defined as “a loan of money, credit, goods, or choses in action, including,
except as otherwise specifically indicated, provision of a line of credit, in an amount or to a value of
$25,000 or less for which the lender charges, contracts for, collects, or receives interest at a rate
greater than 18 percent per annum.”4
Currently, the Act provides that, at the time of applying for a license, the applicant shall pay to OFR a
nonrefundable biennial license fee of $625.5 Applications, except for applications to renew or reactivate
a license, must also be accompanied by a nonrefundable investigation fee of $200. 6
The Act also prohibits licensees from applying delinquency charges until a borrower has been in default
for 10 days.7
Licensed lenders are allowed to make secured or unsecured loans up to $25,000 with a tiered interest
rate structure, such that the maximum annual interest rate allowed on each tier decreases as principal
amounts increase:
 30% per annum, computed on the first $3,000 of the principal amount;
 24% per annum on that part of the principal amount exceeding $3,000 and up to $4,000; and
 18% per annum on that part of the principal amount exceeding $4,000 and up to $25,000. 8
This yields an allowable maximum interest rate for the following loan amounts:
Approximate Maximum
Loan Amount
Interest Rate
$5,000 26.4%
$10,000 22.2%
$15,000 20.8%
$25,000 19.2%
Effect of the Bill
1 S. 20.121(3)(a)2., F.S. See also Florida Office of Financial Regulation, Agency Analysis of 2024 House Bill 1347, p. 1
(Jan. 19, 2024).
2 Florida Office of Financial Regulation, Division of Consumer Finance,
https://flofr.gov/sitePages/DivisionOfConsumerFinance.htm (last visited Jan., 19, 2024).
3 S. 516.02(1), F.S.
4 S. 516.01(2), F.S.
5 S. 516.03(1), F.S.
6 Id.
7 S. 516.031(3)(a)9., F.S.
8 S. 516.031(1), F.S.
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 General
The bill provides a definition for the term “branch,” namely, “any location, other than a licensee’s
principal place of business, at which a licensee operates or conducts business … or which the licensee
owns or controls for the purposes of conducting business….”
The bill clarifies a person must not engage in the business of making consumer finance loans or
operate a branch of such business unless first authorized to do so under the Act. The bill requires an
application fee of $625 be paid to OFR for each branch application filed, which is in addition to the $625
application fee for the branch’s principal place of business. The bill provides that applications for a
license for the principal place of business be accompanied by a nonrefundable investigation fee of
$200.
Maximum Rate Increase; Delinquency Charges
The bill retains the tiered interest rate structure but increases the maximum interest rate and the
amount of principal for each tier, such that the tiered interest rate structure will be as follows:
 36% per annum, computed on the first $10,000 of the principal amount;
 30% per annum on that part of the principal amount exceeding $10,000 and up to $20,000; and
 24% per annum on that part of the principal amount exceeding $20,000 and up to $25,000.
This yields an allowable maximum interest rate for the following loan amounts:
Approximate Maximum Interest Rate
Loan Amount
Current Proposed
$5,000 26.4% 36.0%
$10,000 22.2% 36.0%
$15,000 20.8% 34.0%
$25,000 19.2% 31.2%
Disaster Relief and Suspension of Penalties
The bill provides that in the event of a Federal Emergency Management Agency (FEMA) response to a
Presidential Disaster Declaration in Florida, if a licensee offers any assistance program to borrowers
impacted by the disaster, the licensee must send to OFR a written notice within 10 days after the
licensee’s establishment of the assistance program. The notice must include, at a minimum, the
following:
 The licensed locations impacted by the disaster, including the physical addresses, if applicable;
 The telephone number, e-mail address, or other contact information for the licensee;
 A brief description of the assistance programs available to borrowers in the impacted areas; and
 The start date and, if known, the end date of the assistance program.
The bill provides that assistance programs may include, but are not limited to, deferments, forbearance,
waiver of late fees, payment modification, or changing payment due dates.
Similarly, in the event of a FEMA response to a Presidential Disaster Declaration in Florida, the bill
requires a licensee operating in a county designated in the disaster declaration to suspend, for a period
of 90 days after the date of the initial declaration, all of the following:
 Application of delinquency charges;
 Repossessions of collateral pledged to loans made under the Act; and
 Filing of lawsuits for collection of amounts owed for loans made under the Act.
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 Credit Education Program
The bill requires a licensee to offer, at the time a loan is made, a free credit education program or
seminar provided by the licensee or a third-party. However, a licensee may not require a borrower to
participate in a credit education program or seminar as a condition of receiving a loan.
The bill provides that the credit education program may address, but need not be limited to, any of the
following topics:
 The importance and methodology of establishing a household budget.
 The impact, value of, and ways to improve a credit score.
 The importance and methodology of establishing household savings.
 Ways to obtain a free copy of a credit report.
 Ways to dispute an error in a credit report.
 Ways to manage and prevent identity theft.
Annual Reports
The bill requires a licensee, by March 15, 2025, and annually thereafter, to file a report with OFR, in a
form and manner prescribed by commission rule, using aggregated and anonymized data without
reference to any borrower’s nonpublic personal information. The bill requires the report to include the
following information for the preceding calendar year:
 The number of licenses under the Act held by the licensee as of December 31st of the
preceding calendar year;
 The number of loan originations by the licensee from all licenses held under the Act during the
preceding calendar year;
 The total number and dollar amount of loans outstanding with the licensee from all licenses held
under the Act as of December 31st of the preceding calendar year;
 The total number of unsecured loans as of December 31st of the preceding calendar year;
 The total number of loans separated by principal amount in the following ranges as of
December 31st of the preceding calendar year:
o From $0 to $5,000
o From $5,001 to $10,000
o From $10,001 to $15,000
o From $15,001 to $20,000
o From $20,001 to $25,000;
 The total number and dollar amount of loans charged off as of December 31st of the preceding
calendar year; and
 The total number and dollar amount of loans with delinquency status listed as:
o Current or less than 30 days past due.
o From 30 to 59 days past due.
o From 60 to 89 days past due.
o At least 90 days past due.
The bill requires a licensee claiming that information contained in the report contains a trade secret to
submit to OFR an accompanying affidavit designating the information claimed to be a trade secret. The
bill allows OFR to publish a report of the information submitted if all the data published in the report are
anonymized aggregate data from all licensees.
B. SECTION DIRECTORY:
Section 1. Amends s. 516.01, F.S., relating to definitions.
Section 2. Amends s. 516.02, F.S., relating to loans; lines of credit; rates of interest; license.
Section 3. Amends s. 516.03, F.S., relating to application for license; fees; etc.
Section 4. Amends s. 516.031, F.S., relating to finance charge; maximum rates.
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 Section 5. Amends 516.15, F.S., relating to duties of licensee.
Section 6. Creates s. 516.38, F.S., relating to annual reports by licensees.
Section 7. Creates s. 516.39, F.S., relating to suspension of penalties and remedial measures after
federal disaster declaration.
Section 8. Reenacts s. 516.19, F.S., relating to penalties.
Section 9. Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
OFR estimates its revenues may decrease by as much as $5,000 per fiscal year if it no longer
receives the background investigation fee of $200 required for each additional location once
replaced by a branch office license requirement.9 OFR considers this to be a negligible amount
which would not impact its operations.10 Additionally, according to OFR, the reduction in staff time
no longer needed to review a full license application for each additional location when replaced with
a branch office license would likely offset any loss in revenues. 11
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate fiscal impact on the private sector. 12 Applicants will no longer be required
to pay a $200 background investigation fee for each additional location with the implementation of a
branch office license.13 This may save applicants up to $5,000 per fiscal year in reduced fees. 14
Consumers may benefit from increased opportunities to receive loans if consumer finance lenders
issue more credit under the terms allowed by the bill, but they may also see an increase in interest
payable on consumer finance loans, to the extent that lenders utilize higher interest rates permitted by
the bill.
D. FISCAL COMMENTS:
9 Office of Financial Regulation, supra note 1.
10 Id.
11 Id.
12 Id.
13 Id.
14 Id.
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 The bill proposes to create a branch license in lieu of a full license for each additional location of a
licensee.15 The branch licenses will not include the $200 background investigation fee and thus result in
a fee reduction.16
Additionally, the bill would require OFR to make technology changes to its internal licensing system to
create a branch office license and annual reporting functionality. 17 The cost of these changes would be
negligible and could be covered within OFR’s existing budget.18
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
Article VII, sec. 19(e), of the Florida Constitution requires any bill that imposes, authorizes, or raises