After vetoing a similar measure last year, Florida Gov. Ron DeSantis signed a bill on Friday 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.
Read: Florida Gov. DeSantis Vetoes Housing Bill For Florida Farmworkers
Under the bill, they can charge annual interest rates up to 36 percent on the first $10,000 of principal amounts, 30 percent between $10,000 and $20,000, and 24 percent between $20,000 and $25,000.
DeSantis vetoed a bill last year that would have set an overall 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 borrowers an alternative to online lenders at higher interest rates. But opponents said the bill's higher maximum rates could hurt borrowers.
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