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Daily Legislative Brief from January 17, 2018

Consumer Protection

HB 857-Relating to Deferred Presentment Transactions

On Wednesday, January 17th, HB 857, by Representative James Grant (R-Tampa) was heard by the House Insurance and Banking Subcommittee and passed. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, spoke in support of this bill.

The bill authorizes deferred presentment installment transactions under Florida law. Deferred presentment transactions made pursuant to HB 857 would be exempt from the underwriting requirement of the Consumer Finance Protection Bureau (CFPB) rule because such loans would be for a term longer than 30 days, and would not be a longer-term balloon payment loan because the bill requires installment payment to be as equal as practicable.

Provisions of the CFPB rule relating to payment practices, lender reporting, and compliance will apply to deferred presentment installment transaction lenders that provide loans with a term longer than 45 days, with a cost of credit exceeding 36 percent per annum, and that have a leveraged payment mechanism.

HB 857 will go on to the House Government Operations and Technology Appropriations Subcommittee for its next hearing.

AIF supports legislation that creates a new framework that conforms with the federal guidelines while also retaining the choices Florida consumers need and deserve.