Contact Us Today (813)-282-9330

Consumer Blog

Florida Government Continues Destruction of Working Class with Bill Increasing Interest Rate Increase for Consumer-Finance Loans

Posted by Sami Thalji | May 10, 2023

Florida's Governor and :legislature continue the unprecedented assaults on Florida's working class consumers. Thanks to Florida's government, consumers can now look forward to continued unaffordability in housing, the highest property insurance rates in the country, the least property insurance coverage in the country, the highest car insurance, lowest teacher pay, terrible schooling, etc. This legislative session finalized the State's greatest transfer of wealth from working class to the insurance companies and hedge funds. Now, the Florida Senate has recently approved a bill that would allow consumer-finance loans to have interest rates as high as 36%. The bill, which was passed by the House last week and finalized by the Senate on Monday, is now awaiting the signature of Gov. Ron DeSantis to become law.

This move has been controversial, with some arguing that it will provide more credit opportunities to consumers while others argue that it will lead to predatory lending practices. According to Senate sponsor Joe Gruters, the bill is meant to expand credit opportunities for consumers who currently resort to high-interest online loans. The bill aims to establish a uniform 36% maximum annual interest rate for consumer-finance loans. Arguing that raising interest rates to 36% gives greater credit "opportunities" is a joke. The only opportunities will go to unscrupulous lenders. Consumers, on the other hand, will be left with unpayable loans and in bankruptcy. 

Consumer-finance loans are often used by people who cannot qualify for traditional loans. These loans typically have high interest rates and fees and can be difficult to repay, leading borrowers to take out new loans to pay off old ones. This cycle of borrowing is known as a debt trap, and it can be hard for people to break out of it once they are caught in it.

Sen. Lori Berman, D-Boca Raton, opposes the bill, describing a 36% interest rate as "predatory" and stating that people can get caught up in a cycle of taking out loans. However, proponents argue that the bill will offer more options to borrowers who currently have limited options when it comes to borrowing money.

In Florida, there is currently a three-tier system in place for interest rates on consumer-finance loans. The proposed legislation aims to establish a uniform 36% maximum annual interest rate for all consumer-finance loans, and consumer-finance companies will face stricter regulations, such as the obligation to submit yearly reports to the state containing loan information.

If this bill becomes law, it will be important for consumers to be aware of the risks associated with high-interest loans. While these loans may offer quick access to cash, they can also trap borrowers in a cycle of debt that can be difficult to escape. As always, it is important to read the terms and conditions of any loan carefully and to make sure that you understand the risks and costs associated with borrowing money.

In conclusion, the approval of this bill by the Florida Senate may have significant implications for consumer finance in the state. While proponents argue that it will expand credit opportunities for consumers, opponents are concerned about the potential for predatory lending practices. As this bill becomes law, it will be important for consumers to be aware of the risks and costs associated with borrowing money and to make informed decisions about their finances.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...


Our law firm only represents consumers and we have built our entire practice around that fact.