The proposed bill, titled the "Default Interest Transparency Act," amends existing Florida statutes to enhance the transparency and accountability of lenders in their dealings with borrowers. It requires lenders or their representatives to provide a dated receipt for payments made by borrowers, detailing the amount paid and its purpose. Additionally, the bill introduces a new section, 687.085, which mandates that lenders notify borrowers and all obligors of a loan within 45 days of a 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 section 701.01 to require mortgage loan assignors to provide a loan history statement to borrowers upon request, with the first copy provided at no cost. The assignee of a mortgage loan is also obligated to notify borrowers of any changes to outstanding balances and provide detailed information regarding the default and charges. The amendments are retroactive and apply to all loans executed in Florida, with the act set to take effect on July 1, 2025.

Statutes affected:
S 392 Filed: 687.08, 701.01