TALLAHASSEE, Fla. - With three weeks left until the state legislature is scheduled to adjourn (May 5) representatives of credit unions, consumer groups, social services groups and bankers met in Florida Comptroller Robert Milligan's office April 3 along with Attorney General Bob Butterworth, to devise strategy and proposals that can be presented to the state legislature on the subjects of fringe lending, title loans and so-called payday loans. For the fourth time in as many years, legislation is working its way through the Florida legislature on each subject (CU Times, March 29), but as of April 3 no legislation had been taken up and passed by either the state House or Senate. S. 1834c1, creating the "Fair Accountability in Interest Rate Act of 2000" was introduced by state Sen. Jack Latvala (R-19), Kendrick Meek (D-36), Patsy Ann Kurth (D-15) and Burt Saunders (R-25). It was referred to the Senate Governmental Oversight and Productivity Committee where it was combined with committee substitute bill S. 694. It remains in committee. On the House side, Rep. Bill Sublette (R-40) introduced H.B. 301. That bill is also in committee, the House General Government Appropriations Committee. Representing credit unions were: Aletta Shutes, executive vice president of the Florida Credit Union League; Mark Ivester, vice president of communications for the league; and Chalker W. Brown, vice president of the NAS (Naval Air Station) Jacksonville branch of Jax Navy FCU. Speaking to the assembled group, Milligan and Butterworth stressed the need to design legislation to combat payday lending that would prove to be acceptable to a majority of the legislature. Speaking for himself, Milligan said he wants to see something done to end the constant roll over of payday loans, but he did not want to specify an interest rate or fee. He suggested a requirement that a payday advance would not become a loan unless it was for more than 14 days. After that, he said, it should be a loan subject to the same requirements as any other loan, including interest rate. Continuation, or rollover of the loan, would not be allowed unless it was subject to the more favorable rate. -
ekingoff@cutimes.com
