Florida

florida state map

Payday Loans in Florida

At a Glance
Florida
florida state flag
  • Nickname: The Sunshine State
  • Population: 21.3 million
  • Capital: Tallahassee
  • Website: MyFlorida.com

Florida draws people from far and wide for its sandy beaches and sunny skies, along with its thriving night life and world renowned fine dining. But some Florida residents may not get to experience all that the state has to offer because they’re struggling with their finances.

In 2018, Florida’s poverty rate was about 14.0%, which is one of the highest rates in the nation (the U.S. average for 2018 was 11.8%). While Florida’s median household income of $55,462 is $6,475 less than the national average of $61,937, their credit card debt ($6,460) is higher than the average debt for folks across the rest of the country ($6,028).

Average Credit Card Debt and Median Household Income in Florida vs. the U.S.
Alabama
US
$6,460
$6,028
Average Credit Card Debt (Q1 2019)
$55,462
$61,937
Median Household Income (2018)

Payday Loans in Florida

Payday loans are small-dollar loans that come due on the borrower’s next payday, which is typically in 2 to 4 weeks. The borrower usually just needs to have a checking account and be able to show proof of income to be eligible for a payday loan. The borrower provides the lender with a post-dated check at the time of the original loan. If and when the borrower is not able to pay back the lender on time, the lender has the right to cash the post-dated check or take out funds from the checking account.

A 2013 study by the Insight Center for Community Economic Development found that Florida’s payday lending business resulted in $76 million of lost economic activity and an estimated loss of 1,117 jobs in the Sunshine State. According to a 2016 policy brief put out by the Center for Responsible Lending, the payday loan business has consistently been on the increase from 2005 through 2015, as shown in the figures below.

Payday Loan Transactions in Floria from 2005 to 2015

 

Annual Payday Loan Transactions

Annual Volume

Total Annual Fees

2005

4.6 million

$1.73 billion

$186.50 million

 

 

2015

7.9 million

$3.13 billion

$311 million

Payday Loans in Florida in 2004-2015
  • Average Loan Size:$399.35
  • Average Fees:$42.73
  • Average APR:278%
  • Total Fees Extracted:$311 million

Source: “Perfect Storm: Payday Lenders Harm Florida Consumers Despite State Law” Center for Responsible Lending, March 2016. https://www.responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_perfect_storm_florida_mar2016.pdf

According to the 2016 policy brief put out by the Center for Responsible Lending, over 83% of the payday loans in Florida were taken out by Floridians who had 7 or more loans, and 57% of borrowers had 12 or more loans.

Loans to Repeat Borrowers in Generate Majority of Payday Loan Volume in Florida

Loans to Borrowers With…

7 or more loans per year

12 or more loans per year

 

2015

 

83%

 

57%

 

2014

 

84%

 

59%

 

2013

 

85%

 

61%

 

2012

 

85%

 

62%

 

2011

 

85%

 

63%

 

2010

 

85%

 

63%

 

2009

 

84%

 

61%

 

2008

 

83%

 

60%

 

2007

 

81%

 

58%

 

2006

 

81%

 

58%

Source: “Perfect Storm: Payday Lenders Harm Florida Consumers Despite State Law” Center for Responsible Lending, March 2016. https://www.responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_perfect_storm_florida_mar2016.pdf

 

The Center for Responsible Lending 2016 policy brief notes that from 2005 to 2015, the percentage of payday loan borrowers who were 65 or older increased from 3.4% to 8.6% (which is a 152.9% increase.). This increase is much higher than the 9.7% increase in this age bracket across the state.

The Center for Responsible Lending 2016 policy brief also notes that payday lender locations are more concentrated in communities with a high proportion of African Americans and Latinos. More specifically, these communities have 8.1 stores per 100,000 people, while mostly White communities have only 4.0 stores per 100,000 people.

Consumer Protection in Florida

If you need to report a lender to the authorities, contact the Florida Office of Financial Regulation:

You can also file a complaint with the Florida Attorney General’s Office:

You may also file a complaint with the Florida Department of Agriculture and Consumer Services, which acts as the State’s consumer complaint clearinghouse, at www.floridaconsumerhelp.com.

 

Guides to Payday Loans in Florida Cities

Check out these payday loan guides to the following cities in Florida:

Jacksonville | Miami | Tampa