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FLORIDA CONSUMER FINANCE ACT
CHAPTER 69V-160, FAC
69V-160.001 Licensee Defined.
69V-160.008 Insurance Companies and Agents.
69V-160.012 Deed or Other Conveyance as Collateral.
69V-160.013 Disbursement Record.
69V-160.014 Explaining and Returning Loan Papers.
69V-160.015 Delinquent Charges.
69V-160.016 Computations.
69V-160.017 Application of Payments.
69V-160.018 Deductions and Distributions.
69V-160.019 Monthly Installments Defined.
69V-160.020 Overcharges.
69V-160.024 Names and Addresses of Corporate Officers.
69V-160.025 Property Insurance on Loans.
69V-160.027 Monthly Billing Statements as Receipts for Payment.
69V-160.028 Form of Records Kept by Licensee.
69V-160.029 Other Business Conducted by Licensee.
69V-160.030 Application Procedure for Consumer Finance License.
69V-160.031 Consumer Finance License Renewal and Reactivation.
69V-160.034 Failure to Demonstrate Financial Responsibility
Defined.
69V-160.035 Failure to Demonstrate Character or General Fitness
Defined.
69V-160.111 Disciplinary Guidelines.
69V-160.001 Licensee
Defined.
For the purposes of the rules in this chapter, “licensee” shall mean and intend
any licensee under Chapter 516, FS.; and, with respect to any prohibited activities
in said chapter, the term shall also include officers, directors, managers and employees
of the licensee.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.02 FS. History–Amended
10-20-73, Renumbered from 3-2.01 to 3D-160.01 on 8-11-75, Readopted 9-1-75, Formerly
3D-160.01, 3D-160.001.
69V-160.008 Insurance Companies and Agents.
Upon request, the licensee shall furnish to the Office of Financial Regulation
the name and address of the insurance company writing insurance in connection with
loans made by the licensee.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.20(1), 516.35
FS. History–Amended 10-20-73, Renumbered from 3-2.08 to 3D-160.08 on 8-11-75, Readopted
9-1-75, Formerly 3D-160.08, 3D-160.008.
69V-160.012 Deed or Other Conveyance as Collateral.
A licensee shall not permit a borrower to execute and deliver to licensee a
deed or other unconditional conveyance transferring ownership or borrower's real
or personal property as security or collateral for a loan. Any collateral or security
shall be evidenced by an appropriate mortgage or other security instrument. A deed
or other conveyance transferring ownership of real or personal property to the borrower
shall not be held or kept as collateral or security by a licensee.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.16 FS. History–Amended
10-20-73, Renumbered from 3-2.12 to 3D-160.12 on 8-11-75, Amended 9-1-75, Formerly
3D-160.12, 3D-160.012.
69V-160.013 Disbursement Record.
For each loan, the licensee shall prepare and keep a disbursement record which
shall show deductions and distributions made from the proceeds of the loan.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.12(1) FS. History–Amended
10-20-73, Renumbered from 3-2.13 to 3D-160.13 on 8-11-75, Amended 9-1-75, Formerly
3D-160.13, 3D-160.013.
69V-160.014 Explaining and Returning Loan Papers.
(1) Explaining loan papers. The licensee shall explain fully to all signers
of loan papers:
(a) That the loan is made under the Florida Consumer Finance Act;
(b) That the terms of the loan provide for interest and charges pursuant to the
Florida Consumer Finance Act; and
(c) The nature of the security for the loan.
(2) All instruments of indebtedness signed by the borrower, including, but not limited
to notes, security agreements, mortgages and the like, shall be returned by the
licensee to the borrower marked plainly with the words “Paid” or “Cancelled” within
thirty days of payment in full, provided however:
(a) Where a real estate mortgage has been recorded, after the loan is paid, or upon
refinancing of the unpaid principal balance of a prior loan with the licensee, a
mortgage release or satisfaction shall be issued and filed by the licensee in the
county of record within a reasonable time or as prescribed by any other applicable
statute.
(b) Where a vehicle lien/title certificate has been recorded, after payment in full,
or the refinancing of the unpaid principal balance of a prior loan with the licensee,
a vehicle lien release or satisfaction shall be issued by the licensee to the borrower.
(c) Where a financing statement has been filed, and a release fee has been assessed
to the borrower, and after payment in full of the loan not paid by renewal, a termination
statement shall be issued by the licensee to the borrower within a reasonable time.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.15, 679.404 FS.
History–Amended 10-20-73, Renumbered from 3-2.14 to 3D-160.14 on 8-11-75, Amended
9-1-75, 10-21-75, 3-21-77, Formerly 3D-160.14, Amended 7-10-96, Formerly 3D-160.014.
69V-160.015 Delinquent Charges.
Any charge that a licensee may impose or collect pursuant to Section 516.031(2),
Florida Statutes, shall for all purposes be considered interest and shall be subject
to the maximum rates provided and authorized by Chapter 516, Florida Statutes.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.031(1), (2),
(4), (5) FS. History–Revised 10-20-73, Renumbered from 3-2.15 to 3D-160.15 on 8-11-75,
Readopted 9-1-75, Formerly 3D-160.15, 3D-160.015.
69V-160.016 Computations.
The rate of interest for each day shall not be greater than 1/365th of the maximum
annual rate of interest charge permitted under Chapter 516, Florida Statutes.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.031(2) FS. History–Revised
10-20-73, Renumbered from 3-2.16 to 3D-160.16 on 8-11-75, Readopted 9-1-75, Formerly
3D-160.16, 3D-160.016.
69V-160.017 Application of Payments.
Each payment shall be applied first to the accumulated interest charges and
the remainder of the payment applied to the unpaid principal balance; provided that
if the amount of the payment is insufficient to pay the accumulated interest charge,
the unpaid accrued interest charge may continue to accumulate and the same may be
paid from the proceeds of subsequent payments and shall not be added to the principal
balance. No payment shall be accepted on the principal balance unless interest is
paid to date or is waived by license, except such payment may be credited to the
principal where the amount thereof is not sufficient to pay the interest due for
one day.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.031(1) FS. History–Revised
10-20-73, Renumbered from 3-2.17 to 3D-160.17 on 8-11-75, Readopted 9-1-75, Formerly
3D-160.17, 3D-160.017.
69V-160.018 Deductions and Distributions.
(1) The following are the only deductions and distributions permitted to be
made by the licensee from the principal amount of
a loan:
(a) Documentary excise taxes.
(b) Fees required to be paid for the filing, recording or releasing of any instrument
securing the loan including the premium payable for any insurance in lieu of perfecting
any security interest otherwise required by the licensee.
(c) Premiums for non-filing, credit life, credit property, disability and involuntary
unemployment insurance purchased pursuant to and to the extent the same are permitted
by Chapter 516, Florida Statutes, or the Florida Insurance Code and any rules and
regulations thereunder.
(d) Distributions on behalf of the borrower, including payments of obligations due
licensee.
(e) Fees required to be paid for title insurance, title search fees, and an opinion
from an attorney licensed to practice law in Florida.
(f) Fees paid for appraisal or opinion of value of real property offered as security
when paid to qualified third parties and supported by an actual expenditure. Receipts
for the expenditure must show the amount, date, and the name of the client for whom
the expenditure was made if the deduction is to be allowed.
(g) Fees required by the licensee for investigating the credit of the borrower,
or, the annual fee on a line of credit.
(2) Documentary stamps and recording. Upon completion of the loan transaction, documentary
stamps shall be attached to the appropriate document and cancelled. Instruments
on which the borrower has paid the fees for filing and recording shall be recorded
among the public records within thirty (30) days from the date of the instruments.
All deductions from the principal amount of the loan provided by Chapter 516, Florida
Statutes, are permitted only to the extent they are actually paid, used or disbursed
for the purposes stated.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.15(1), 516.031
FS. History–Amended 10-20-73, Renumbered from 3-2.18 to 3D-160.18 on 8-11-75, Readopted
9-1-75, Amended 10-21-75, 4-2-81, Formerly 3D-160.18, Amended 10-17-94, 7-10-96,
Formerly 3D-160.018.
69V-160.019 Monthly Installments Defined.
Loans shall be made repayable in equal monthly installments, including both
principal and interest, with interest charges calculated on the assumption that
all scheduled payments will be made when due. Provided, however, if the repayment
schedule is otherwise than regular, the first installment period only may exceed
one month by as much as fifteen (15) days, and the additional interest for such
excess days may be added to the first installment payment.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.20(2), 516.36
FS. History–Revised 10-20-73, Renumbered from 3-2.19 to 3D-160.19 on 8-11-75, Readopted
9-1-75, Formerly 3D-160.19, 3D-160.019.
69V-160.020 Overcharges.
Should a licensee charge, contract for, or receive interest or charges in excess
of those permitted, and such overcharge is a result of a bona fide error, the loan
contract shall remain valid and no penalty shall result, provided that the licensee
shall refund or credit the borrower with the amount of such overcharge within twenty
(20) days of the licensee's discovery of such error. In the event that the discovery
of such overcharge was the result of a complaint by a borrower or of the Office
of Financial Regulation, the Office shall investigate the circumstances surrounding
the making of the overcharge and shall determine whether it was the result of bona
fide error.
Specific Authority 516.22(1) FS. Law Implemented 516.031(3) FS. History–Revised
10-20-73, Renumbered from 3-2.20, 8-11-75, Readopted 9-1-75, Amended 5-12-82, Formerly
3D-160.20, Formerly 3D-160.020.
69V-160.024 Names and Addresses of Corporate Officers.
A licensee constituted in the corporate form shall furnish the Office of Financial
Regulation the name and address of each officer of its corporation and when any
officer of the corporation is changed, the Office of Financial Regulation shall
immediately be notified of the change and the name and address of any new officer
or officers.
Specific Authority 20.05(5), 516.22(1) FS. Law Implemented 516.12(1)(2), 516.05(2)(a),
516.07(1)(c) FS. History–Amended 10-20-73, Renumbered 3-2.24 to 3D-160.24 on 8-11-75,
Readopted 9-1-75, Formerly 3D-160.24, 3D-160.024.
69V-160.025 Property Insurance on Loans.
(1) Coverage. When, at the written request of the borrower, the licensee places
insurance to protect household goods and appliances used as collateral for a loan,
the policy shall include coverage against the perils of fire and broad-form extended
coverage. At the option of the borrower, the policy may contain the following coverages:
transportation and change of location; burglary; and rental reimbursement in event
of loss.
(2) Issuer. A licensee may provide property insurance only on written authorization
signed by the borrower through a duly licensed agent and an insurance company qualified
by the Insurance Commissioner to do business in the State of Florida.
(3) Insurance voluntary. The borrower shall not be required to purchase a policy
from any certain company, agent, broker or person as a condition precedent to the
granting of a loan. Purchase of property insurance, from the licensee, shall be
entirely voluntary on the part of the borrower and so stated in a signed application
requesting the licensee to place property insurance on the collateral.
(4) Forms and rates. The policy forms and rates charged must be in compliance with
the Florida Insurance Code and
regulations of the Commissioner of Insurance. The licensee shall retain, on the
premises of the lending institution office, complete copies of the policy forms
used and manuals of rates charged.
(5) Limitation. Property insurance may not be placed where there are not specific
household or appliance goods offered as collateral or where the borrower has valid
and collectible fire and extended coverage insurance on the same collateral to offer
the licensee.
(6) Delivery of policy. The licensee shall deliver or cause to be delivered to the
borrower evidence of insurance at the time the loan is made and deliver or cause
to be delivered to the borrower a copy of the policy within fifteen days from the
date the loan was made.
(7) Amount. The amount of property insurance shall be limited to the amount of indebtedness
or the reasonable value of the property insured, whichever is less.
(8) Unearned premium. The unearned premium resulting in cancellations shall be computed
and refunded in accordance with the cancellation provisions of the insurance policy
placed by the licensee on behalf of the borrower. Any minimum retained premium shall
not exceed $3.00. A pro rata refund shall be allowed on loan renewals.
(9) Total losses. On total losses, the property insurance shall pay the original
amount of insurance, regardless of the value of the property or the amount owing
at the time such total loss occurs. Partial losses shall be settled on an actual
cost to repair or replace basis and there shall be no deductions from the amount
of settlement for depreciation or betterment.
(10) Description. Where the licensee provides property insurance on specific household
or appliance goods, the credit files of the licensee shall contain a description
sufficient for identification of all the property insured as collateral.
(11) Rules to be displayed. The licensee shall display in a conspicuous place in
the office of the lending institution the rules contained herein governing insurance
on household goods and appliances. Upon request of the borrower, the licensee shall
explain clearly to the borrower his rights and limitations as set forth in said
rules.
(12) Collateral Insurance. When real or personal property, other than household
goods and appliances, are used as collateral for a loan and the borrower is required,
by the loan contract, to keep the collateral insured, a physical damage policy may
be required naming the licensee as “Loss Payee.” Should such insurance expire or
be cancelled, the borrower may be required to furnish the licensee with replacement
coverage. Should the borrower fail to furnish such a policy on written request,
either a vendor's single interest or a dual interest replacement policy may be obtained
by the licensee and the premium charged to the loan account.
Specific Authority 20.05(5), 516.22(1) FS. Law Implemented 516.20(1), 516.031(3)
FS. History–New 9-1-75, Amended 8-16-83, Formerly 3D-160.25, 3D-160.025.
69V-160.027 Monthly Billing Statements as Receipts for Payment.
The duty of a licensee to give to the borrower a plain and complete receipt
for all payments made on account of any loan at the time payments are made pursuant
to subsection 516.15(2), F.S., is discharged when payments are through mail by check
or money order by furnishing the borrower with a monthly billing statement detailing
payments.
Specific Authority 20.05(5), 516.22(1) FS. Law Implemented 516.15(2) FS. History–New
4-2-81, Formerly 3D-160.27, 3D-160.027.
69V-160.028 Form of Records Kept by Licensee.
The records required by Section 516.12, F.S., shall be kept in accordance with
sound and accepted accounting practices, but no particular form is required for
keeping the records. In addition to the general records, a licensee shall maintain
a log of all insurance claims, repossessions, and litigation. Such forms and systems
of accounting shall be used as will enable the Office of Financial Regulation to
determine compliance with the Florida Consumer Finance Act. Contemplated herein
is the use of electronic data systems.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.12 FS. History–New
4-2-81, Formerly 3D-160.28, Amended 7-10-96, Formerly 3D-160.028.
69V-160.029 Other Business Conducted by Licensee.
A licensee may, at the same licensed business location, utilize a separate legal
entity, which is not licensed under Chapter 516, Florida Statutes, to engage in
the business of making loans of money, credit, goods or chooses in action in amounts
in excess of $25,000.00; however, all the books and records concerning the conduct
of such other loan business shall be kept and maintained at such licensed premises
and shall be open to inspection and examination by the Office of Financial Regulation
as provided by Section 516.11, F.S.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.02, 516.11, 516.12
FS. History–New 6-15-87, Amended 7-10-96, Formerly 3D-160.029.
69V-160.030 Application Procedure for Consumer Finance License.
(1) Each person desiring to apply for licensure as a consumer finance company
shall submit the following to the Office of Financial Regulation:
(a) A completed Application for Consumer Finance License, Form OFR-CF-301, revised
10/99, which is hereby incorporated by reference and available from the Office of
Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375;
(b) The statutory, non-refundable investigation fee required by Section 516.03,
F.S.;
(c) The statutory, biennial license fee required by Section 516.03, F.S., which
is refundable upon denial of licensure; and
(d) Documentation that the applicant has liquid assets of at least $25,000.00 for
the operation of the consumer finance
company.
(2) Request for Additional Information. Any request for additional information will
be made by the Office of Financial Regulation within thirty (30) days after receipt
of the application by the Office of Financial Regulation. The additional information
must be received by the Office of Financial Regulation within forty-five (45) days
from the date of the request. Failure to respond to the request within forty-five
(45) days from the date of request shall be construed by the Office of Financial
Regulation as grounds for denial for failure to complete the application, and the
application shall be denied pursuant to Section 120.60(1), F.S.
(3) Withdrawal of Application. An applicant may request withdrawal of an application
prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written
request that the application be withdrawn.
(4) Refunds. If the application is withdrawn or denied, the investigation fee is
non-refundable. If the application is withdrawn
or denied, the license fee is refundable.
(5) If one's civil rights have been restored and the conviction did not directly
relate to the consumer finance industry, the applicant shall provide evidence of
restoration of civil rights. If one's civil rights have been restored and the conviction
is directly related to the consumer finance industry, the applicant shall provide
evidence of restoration of civil rights and rehabilitation. Evidence of rehabilitation
should include, but is not limited to, employment history and letters from probation
officers and employers.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.03(1), 516.05(1),
516.07 FS. History–New 12-18-88, Amended 5-9-90, 10-1-95, 1-5-00, Formerly 3D-160.030.
69V-160.031 Consumer Finance License Renewal and Reactivation.
(1) Each active consumer finance license will be renewed for the biennial period
beginning January 1 of every odd-numbered year, upon submission of the statutory
renewal fee and renewal notice to the Office of Financial Regulation. Form OFR-CF-3
(effective 10/99), Consumer Finance License Renewal, is hereby incorporated by reference
and available by mail from the Office of Financial Regulation, 200 East Gaines Street,
Tallahassee, Florida 32399-0375.
(2) Failure to return the renewal notice and fee prior to January 1 of the renewal
year shall automatically result in the license becoming inactive. The inactive license
may be reactivated within six (6) months after becoming inactive upon payment of
the biennial license fee; and payment of the reactivation fee which is a fee equal
to the biennial license fee; and return of the reactivation notice.
(3) Renewal via the Internet. In lieu of filing the paper version of the renewal
form, a licensee may renew its license electronically by following the applicable
instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us)
on the Internet.
(4) If December 31 of the year is on a Saturday, Sunday, or legal holiday pursuant
to Section 110.117, F.S., then the renewals received on the next business day will
be considered timely received.
Specific Authority 516.03(1), 516.22(1), 516.23(3) FS. Law Implemented 516.03(1),
516.05(1), (2) FS. History–New 12-13-88, Amended 1-5-00, 12-25-00, Formerly 3D-160.031.
69V-160.034 Failure to Demonstrate Financial Responsibility
Defined.
As used in Section 516.07(1)(c), Florida Statutes, failure to demonstrate “financial
responsibility” means having a credit history that reflects any of the following:
unpaid liens, judgments, repossessions, foreclosures or an otherwise general history
of non-payment of legal debts, or having filed a petition for bankruptcy under the
federal Bankruptcy Code.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.07(1) FS. History–New
10-1-95, Formerly 3D-160.034.
69V-160.035 Failure to Demonstrate Character or General Fitness
Defined.
As used in Section 516.07(1)(c), Florida Statutes, failure to demonstrate “character”
or “general fitness” means being convicted or found guilty, regardless of adjudication,
of any crime involving fraud, dishonest dealing or any other act of moral turpitude.
Moral turpitude involves duties owed by persons to society as well as acts contrary
to justice, honesty, principle or good morals. This includes, but is not limited
to, theft, extortion, use of the mail to obtain property under false pretenses,
tax evasion, and the sale of (or intent to sell) controlled substances.
Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.07(1) FS. History–New
10-1-95, Formerly 3D-160.035.
69V-160.111 Disciplinary Guidelines.
Pursuant to Section 516.07(2), Florida Statutes, listed below is a range of
disciplinary guidelines from which disciplinary penalties will be imposed upon any
person guilty of violating Chapter 516, Florida Statutes. The disciplinary guidelines
are based upon a single-act violation of each provision listed. Multiple acts of
the violated provisions or a combination of violations may result in a higher penalty
than that for a single, isolated violation. For purposes of this rule, the order
of penalties, ranging from lowest to highest, is: reprimand, fine, probation, suspension,
and revocation. Nothing in this rule shall preclude any discipline imposed upon
a person pursuant to a stipulation or settlement agreement, nor shall the ranges
of penalties set forth in this rule preclude the Office of Financial Regulation
from issuing a letter of guidance when appropriate.
(1) As provided in Section 516.07(2)(c), Florida Statutes, the Office of Financial
Regulation may, in addition to other
disciplinary penalties, place a licensee or applicant for a license on probation.
The placement of the licensee on probation shall be for such a period of time and
subject to such conditions as the Office of Financial Regulation may specify.
(2) The minimum penalty for all below listed sections is a reprimand and/or a fine
up to $1,000.00 per act. The maximum
penalties are as listed:
(a) 516.02(3) – Probation
(b) 516.031 – Probation
(c) 516.035 – Probation
(d) 516.05(3) – Probation
(e) 516.05(4) – Probation
(f) 516.05(7) – Probation
(g) 516.07(1)(a) – Revocation
(h) 516.07(1)(b) – Suspension
(i) 516.07(1)(d) – Revocation
(j) 516.07(1)(e) – Revocation
(k) 516.07(1)(f) – Suspension
(l) 516.07(1)(g) – Probation
(m) 516.07(1)(h) – Revocation
(n) 516.07(1)(i) – Revocation
(o) 516.08 – Reprimand
(p) 516.12 – Revocation
(q) 516.15 – Probation
(r) 516.16 – Probation
(s) 516.17 – Probation
(t) 516.21 – Probation
(u) 516.31(3) – Probation
(v) 516.35 – Probation
(w) 516.36 – Probation
(3)(a) In the presence of aggravating or mitigating circumstances supported by clear
and convincing evidence, the Office of
Financial Regulation shall be entitled to deviate from the above guidelines in imposing
discipline upon a person.
(b) Aggravating or mitigating circumstances may include, but are not limited to,
the following:
1. The severity of the act.
2. The degree of harm to the consumer or public.
3. The number of times the acts previously have been committed by the person.
4. The disciplinary history of the person.
5. The status of the person at the time the act was committed.
Specific Authority 516.23(3) FS. Law Implemented 516.02, 516.031, 516.035, 516.05,
516.07, 516.08, 516.12, 516.15, 516.16, 516.17, 516.21, 516.31, 516.35, 516.36 FS.
History–New 3-20-91, Formerly 3D-160.111. |
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