Governor Rick Scott Signs Payday Loan Bill Into Law
Governor Rick Scott has approved a bill that will allow payday loan providers to increase loan amounts and extend the repayment time frame.
The bill received bipartisan support from the lawmakers. They believe the payday loans expansion will help consumers have access to cash without too much debt. Former representative Joseph Gibbons spoke on behalf of payday loan provider Amscot.
"There is a need there, and that need was identified in 2001 by legislation. And that legislation had consumer protections in the legislation to prevent this debt trap that I hear about, because there is no debt trap," Gibbons says.
Those in opposition of the measure believe the new payday loan increase will harm consumers. Reverend Rachel Gunter Shapard says consumers who use the loans are often snared in a cycle of debt.
Shapard says she understands Floridians may need small dollar loans but she worries the interest rates are a serious matter when repaying them.