If you are thinking of getting a payday loan and you live in this state you need to check out the payday loan laws in Florida before you take the plunge. They are very much lender friendly and are set up around existing lender laws so they can legally do business in Florida.

What are the laws?

The usury laws of lending in this state were written to protect the borrowers from having to pay ultra high interest rates. Technically, payday loans fall under this usury law.

Legislation was passed to classify payday loan lenders in the same class as check cashing companies. As long as the interest rate is called a "Fee" and no roll overs are allowed they can legally operate in Florida.

Is this bad thing?

It can be a very bad thing for the borrowers. Because they allow a fee of up to 10% and a loan term of 7 to 31 days, so the APR for a 14 day, $100 loan is 390%.

This can lead to a person getting caught without enough money in the bank to cover the check when it comes due and no option to roll over the debt. In other words, if you get caught in the trap the fees add up so fast your head will spin.

What can I do?

First and foremost try to avoid using these services at all costs. They just are not worth the risks. If you find there is no other way and you have to get cash fast, make sure before you take that loan out you can pay it and pay it in full on the due date.

If you already have out of control debt with Payday loans you can still find help and get all your debt consolidated into one monthly low payment. This will free up your paycheck for all those other obligations.

In most cases if you use a payday loan only in extreme circumstances and you make sure you can pay it in full on the due date, aside from paying the extremely high interest rate for your short term loan, you should be OK.

If you end up over your head on the due day or have too many loans out to make the payments, then it is time to find a payday loan debt consolidation company. be sure to find one you can trust and who does not hold your payments 2 to 3 months before they send them to the lenders.

I hope this article helps you with understanding the Florida State payday loan laws, and how to get help if you need it.

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