A Senate Republican on Wednesday filed a proposal that would make changes in the consumer finance-loan industry, including allowing annual interest rates up to 36 percent.
Sen. Joe Gruters, R-Sarasota, filed the proposal (SB 580) for consideration during the legislative session that will start March 7. Under current law, consumer-finance businesses can make up loans up to $25,000 with varying maximum annual interest rates.
Those rates are a maximum of 30 percent on the first $3,000 of principal amounts; 24 percent on principal amounts between $3,000 and $4,000; and 18 percent on principal amounts from $4,000 to $25,000.
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The bill would allow a 36 percent maximum rate on all principal amounts up to $25,000.
The bill also would make regulatory changes, such as requiring that consumer-finance businesses file annual reports that include information about issues such as numbers of loans originated, total dollar amounts of loans, and numbers of outstanding loans.
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