The proposed bill, titled the "Default Interest Transparency Act," aims to enhance transparency and accountability among lenders of money in Florida. It amends existing statutes to require lenders or their representatives to provide borrowers with a dated receipt for payments made, detailing the amount and purpose of the payment. Additionally, the bill introduces a new section that mandates lenders to notify borrowers and all obligors within 45 days of a loan default, including specific information about the nature of the default and the accruing interest. It also prohibits the application of default or delinquency interest charges retroactively for more than 45 days before the required notice is provided.

Furthermore, the bill amends the assignment of mortgage loans, requiring assignors to provide a loan history statement to borrowers upon request, with the first copy provided at no cost. It also stipulates that assignees must notify borrowers of any changes to outstanding balances and provide detailed explanations of any additional charges. The bill includes penalties for non-compliance, such as forfeiting the right to charge additional interest if required notifications are not provided. The amendments are retroactive and apply to all loans executed in the state, with an effective date set for July 1, 2025.

Statutes affected:
S 392 Filed: 687.08, 701.01