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Florida Interest Rate Laws

Florida interest rate laws are stated in Florida Statutes, Title 55(Civil Practice and Procedure), Chapter 55(Judgments), and Title 39(Commercial Relations), Chapter 687(Interest and Usury; Lending Practices).

Under Section 55.03 the state legal maximum interest rate and the interest rate on judgments are determined yearly by the Chief Financial Officer.  The interest rate is fixed by adding 500 basis points to the amount received by averaging the discount rate of the New York Federal Reserve Bank for the preceding year.

Civil usury: Under Section 687.04 any person who charges an excess interest rate should forfeit the interest so charged or contracted.  In such usurious contracts only the principal sum can be claimed.  Criminal usury: Under Section 687.071, it is a misdemeanor of the second degree, if a person willfully charges interest at a rate in excess of 25 percent and within 45 percent per annum.  Punishment for second degree misdemeanor in Florida is imprisonment not exceeding 60 days or penalty of $500. Likewise, it is a felony of the third degree, if the person willfully charges interest at a rate in excess of 45 percent per annum.  Punishment for third degree felony is imprisonment not exceeding five years or penalty of $5000.  Additionally, it is considered misdemeanor of the first degree, if a person keep books or documents of account on usurious interest.  Thus, in Florida interest rates above the state prescribed limit is not enforceable.

Certain types of transactions and entities are exempt from the state law on usury and interest rates.  Section 516.02 exempts licensed business in making loans from the state prescribed interest rate.  However, the interest rate for such loans should not exceed 18 percent per annum.  Under Section 520.085, motor vehicle retail installment sale is also exempted.

Fla. Stat. § 55.03 reads in part:

“§ 55.03.  Judgments; rate of interest, generally
   (1) On December 1 of each year, the Chief Financial Officer shall set the rate of interest that shall be payable on judgments or decrees for the year beginning January 1 by averaging the discount rate of the Federal Reserve Bank of New York for the preceding year, then adding 500 basis points to the averaged federal discount rate. The Chief Financial Officer shall inform the clerk of the courts and chief judge for each judicial circuit of the rate that has been established for the upcoming year. The interest rate established by the Chief Financial Officer shall take effect on January 1 of each following year. Judgments obtained on or after January 1, 1995, shall use the previous statutory rate for time periods before January 1, 1995, for which interest is due and shall apply the rate set by the Chief Financial Officer for time periods after January 1, 1995, for which interest is due. Nothing contained herein shall affect a rate of interest established by written contract or obligation.”

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Fla. Stat. § 687.04 reads in part:

§ 687.04.  Penalty for usury; not to apply in certain situations

   Any person, or any agent, officer, or other representative of any person, willfully violating the provisions of s. 687.03 shall forfeit the entire interest so charged, or contracted to be charged or reserved, and only the actual principal sum of such usurious contract can be enforced in any court in this state, either at law or in equity; and when said usurious interest is taken or reserved, or has been paid, then and in that event the person who has taken or reserved, or has been paid, either directly or indirectly, such usurious interest shall forfeit to the party from whom such usurious interest has been reserved, taken, or exacted in any way double the amount of interest so reserved, taken, or exacted….”

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Fla. Stat. § 516.02 reads in part:
§ 516.02.  Loans; lines of credit; rate of interest; license
   (1) A person must not engage in the business of making consumer finance loans unless she or he is authorized to do so under this chapter or other statutes and unless the person first obtains a license from the office.
(2) (a) A person who is engaged in the business of making loans of money, except as authorized by this chapter or other statutes of this state, may not directly or indirectly charge, contract for, or receive any interest or consideration greater than 18 percent per annum upon the loan, use, or forbearance of money, goods, or choses in action, or upon the loan or use of credit, of the amount or value of $ 25,000 or less.
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    (3) A licensee may offer lines of credit not exceeding $ 25,000 and may charge, contract for, and receive interest charges and other charges pursuant to s. 516.031, except that a licensee may not offer a credit card.
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Fla. Stat. § 520.08 reads in part:

“§ 520.08.  Finance charge limitation
   (1) Notwithstanding the provisions of any other law, the finance charge, exclusive of insurance, shall not exceed the following rates:
   (a) Class 1. Any new motor vehicle designated by the manufacturer by a year model not earlier than the year in which the sale is made–$ 10 per $ 100 per year.
   (b) Class 2. Any new motor vehicle not in Class 1 and any used motor vehicle designated by the manufacturer by a year model of the same or not more than 2 years prior to the year in which the sale is made–$ 11 per $ 100 per year.
   (c) Class 3. Any used motor vehicle not in Class 2 and designated by the manufacturer by a year model not more than 4 years prior to the year in which the sale is made–$ 15 per $ 100 per year.
   (d) Class 4. Any used motor vehicle not in Class 2 or Class 3 and designated by the manufacturer by a year model more than 4 years prior to the year in which the sale is made–$ 17 per $ 100 per year.”

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Inside Florida Interest Rate Laws