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Payday Loans in Florida - The Bills.com Blog
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Payday Loans in Florida
Wednesday, Jul 22, 2009
Question: I live in Florida, can I be charged with theft by check? I used Langhorne Debt solutions to resolve my payday loans, but Summit Group LLC, and CMG group said they don't work with them. Now they are stating that I owe them $6,000 which is 3K per loan. The original loan amount was only $300.
Although payday loans are legal in Florida, the amount of interest and other fees they can charge to consumers are fairly strictly regulated by state law, so I find it highly unlikely that this lender will be able to justify its claim that you owe $6,000 on two loans which began at only $300 each. To read more about payday loans and your rights as a consumer, I encourage you to visit PaydayLoanInfo.org . There, you can also review a summary of Florida's Payday Loan Regulations .
Under Florida law, the payday lender may be required to work out a repayment plan with you at a reasonable interest rate (my understanding is that it
can charge no more than 10% per annum on loans after the first high interest repayment period). If the lender continues to insist on the high balance which you mention in your question, I recommend that you demand a written statement of how the balance was calculated before you make any payments to the creditor. If the creditor refused to provide you with a written explanation of the balance claimed, or if it continues to threaten you with criminal prosecution if you fail to pay the amount claimed, I encourage you to file a complaint with the state agency responsible for the regulation of payday lenders, at The Florida Office of Financial Regulation.
From the information in your question, it sounds like this lender may be violating several state laws regulating payday lenders. However, without much more
From the information in your question, it sounds like this lender may be violating several state laws regulating payday lenders. However, without much more
information I cannot tell you specifically what recourse you have available to you. If you find that the lender is unwilling to work with you, or if you do not feel comfortable negotiating with the creditor directly, you may want to consult with an attorney who can better explain your rights under Florida law and assist you in negotiating with the lender.
The National Association of Consumer Advocates (NACA) may be able to refer you to an attorney in your area who specializes in assisting consumers with problems like yours. See also my answer to another reader who had a question about aggressive payday loan collections in Florida in "Payday Loan and the FDCPA ."
I wish you the best of luck in resolving these payday loans, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
The National Association of Consumer Advocates (NACA) may be able to refer you to an attorney in your area who specializes in assisting consumers with problems like yours. See also my answer to another reader who had a question about aggressive payday loan collections in Florida in "Payday Loan and the FDCPA ."
I wish you the best of luck in resolving these payday loans, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by sofia on Thursday 5th November 2009 07:42
Hello i have a person calling me asking me to pay a payday loan i have borrow only $150.00 but i lost my job and my back account was closed. now they are harrassing me at work and home to pay. this person david clark in california said if do not pay $755.87 in 3 hrs he was going to take me to court and i got so upset and got sick again i told him please give me time to get the money. i called him back to get a name of creditors and the amount he did not want to give me that information. He ask me if i was in trouble by the laws in az for fraud and i told him no also he gave my information to my daughter when he sould have not . he says that he from law frim. What sould I do wait until i go courts or what. Please help me i have not got some sleep since Monday i had call my doctor to get me medication because i'm going thru stree,depression, i have sezures and i know i'm them now because iam going thru.Thank You
2. Posted by Bill on Thursday 5th November 2009 10:11
No one has been imprisoned for debt since the Civil War. Do not believe legal advise from collection agents. The legal information collection agents tell debtors is usually incomplete or wrong, and is always self-serving. Also, remember that just because you are in debt, that does not mean that you lose your rights as a consumer. Please re-read the article above to learn more about your rights as a consumer in Florida, and how to resolve payday loans.
3. Posted by Alex on Monday 16th November 2009 06:41
I just rec'd a letter from Champ Credit Group, LLC on behalf of AeroAdvance Financial Inc stating I owe them $470.00 and have 30 days to pay, call or deny the debt. For 5 years I have not used a pay day advance service. There was one I debated with usuary rates after the fact but I did pay. However due to many factors and a disability I have no idea where my documents are. My credit reports are clean. I don't want to open a Pandora's Box by calling and I do live on social security by direct deposit under age 65 due to disability. What do you suggest? Thank you.
4. Posted by Bill on Monday 16th November 2009 09:53
Reading between the lines, I surmise you do not believe you are responsible for the debt. Send the collection agent a debt validation letter. You can download a sample letter at the Bills.com debt self-help center. Read Collections Agencies, Collections Laws and Your State's Statute of Limitations and in particular the section "Disclaiming responsibility for the debt" For a better understanding of the collections process and how to dispute responsibility for a debt.