Consumer Finance Companies

CF: Consumer Finance Company
This license authorizes the holder to solicit, make and collect loans to consumers in this state for an amount not exceeding $25,000 and with a maximum interest rate of 30 percent per annum. This license is not required for banks and certain other financial institutions doing business under state or federal laws. Each location is treated as an independent license and there are no branches. This license does not apply to title loans or pawns.

Maximum Interest Rate - Any loans entered into on or after October 1, 1997, may charge the maximum interest rate of 30 percent per annum, computed on the first $2,000 of the principal as computed from time to time; 24 percent per annum on that part of the principal amount as computed from time to time exceeding $2,000 and not exceeding $3,000; and 18 percent per annum on that part of the principal amount as computed from time to time exceeding $3,000 and not exceeding $25,000.

Exemptions - This chapter does not apply to any person who does business under, and as permitted by, any law of this state or of the United States relating to banks, savings banks, trust companies, building and loan associations, credit unions, or industrial loan and investment companies. This chapter also does not apply to title loans as defined in s. 538.03(1)(I) or pawns as defined in s.538.03(1)(d). A pawnbroker may not be licensed to transact business under this chapter.

A person may loan money to others, when the per annum percentage rate does not exceed 18 percent, without having a consumer finance license. If a mortgage is placed against real property, as collateral for such a loan, a person may need to be licensed as a mortgage lender pursuant to Chapter 494, Florida Statutes. However, Chapter 494.006(1)(h), F.S., states that a consumer finance company, duly licensed as of October 1, 1991, is exempt from the Mortgage Lending Act.