Florida Attorney General Ashley Moody must express their strong disapproval of rent-a-bank schemes that are illegal in Florida. The loophole in the law is that a third party is allowed to charge astronomical interest rates that can be more than 300% per year, including on transactions originating with another state or country entirely, so long as the payments are made electronically. This loophole must be closed to protect Floridians before predatory loans devastate their finances and affect their credit. Predatory loans can last from six months to over ten years, depending on how long it takes to collect from the borrower. We urge our elected representatives to act swiftly on behalf of homeowners and small businesses before it’s too late.
This practice of illegal usury is something that needs to be stopped. Florida has taken action against these schemes, but nothing is being done nationally where thousands of people are being scammed daily. We demand that Florida’s top law enforcement official joins other states in taking action against rent-to-own programs.
To help protect Floridians from illegal financial services companies. No one should have to endure losing their life savings to loan sharks. Even worse, rent-to-own businesses are growing into a bigger threat every day. These rent-to-own businesses charge astronomical interest rates that bankrupt families and leave them homeless or on welfare. Floridians need protection from predatory lenders who aim to take advantage of them at every turn.
Florida Attorney General Ashley Moody and the Florida state legislature should express their strong disapproval of rent-a-bank schemes. The loophole in the law is that a third party is allowed to charge astronomical interest rates, and this loophole allows local loan sharks to charge $500 for $100 or more per day, with little to no recourse for victims.
The statute should be rewritten to make it crystal clear that rent-to-own companies cannot charge interest rates higher than 36 percent. The loophole in Florida’s law is allowing criminals to prey on vulnerable Floridians. It’s time for our state leaders to take action and fix it.
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