Florida governor signs a bill for higher interest rates on consumer loans

fed Atlanta Georgia homeless houseless — Federal Reserve Bank of Atlanta with unhoused person on a bench. By Seán Kinane/WMNF News (Jan. 2023).

After vetoing a similar measure last year, Gov. Ron DeSantis on Friday signed a bill that could lead to borrowers paying higher interest rates on consumer-finance loans.

The bill (HB 1347) was one of five that DeSantis signed Friday as he wraps up work on bills passed during the 2024 legislative session.

Under current law, consumer-finance loan companies can charge 30 percent annual interest on the first $3,000 of principal amounts; 24 percent on amounts between $3,000 and $4,000; and 18 percent on amounts between $4,000 and $25,000.

Under the bill, they will be able to charge annual interest rates up to 36 percent on the first $10,000 of principal amounts; 30 percent on amounts between $10,000 and $20,000; and 24 percent on amounts between $20,000 and $25,000.

DeSantis last year vetoed a bill that would have set an across-the-board maximum annual 36 percent rate.

The House voted 104-10 to pass this year’s version, while the Senate narrowly passed it in a 21-18 vote.

Supporters said the changes would help attract more consumer-finance lenders to the state, giving an alternative to borrowers who might otherwise have to turn to online lenders at higher interest rates.

But opponents said the higher maximum rates in the bill could hurt borrowers.