Marlin 1, LLC.; on March 7, 2017, the Office of Financial Regulation (Consumer Finance) received a Petition for declaratory statement from Marlin 1 LLC. Marlin 1 LLC is contemplating starting a private lending company that would provide short-term ...

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

NOTICE IS HEREBY GIVEN that the Office of Financial Regulation has received the petition for declaratory statement from Marlin 1, LLC. The petition seeks the agency’s opinion as to the applicability of Chapter 516, Florida Statutes, as it applies to the petitioner.

On March 7, 2017, the Office of Financial Regulation (Consumer Finance) received a Petition for declaratory statement from Marlin 1 LLC. Marlin 1 LLC is contemplating starting a private lending company that would provide short-term loans not exceeding $25,000 at a interest rate of 18% per annum, to both individuals and small businesses. The petition seeks a declaratory statement from the Office on whether a consumer finance license pursuant to Chapter 516, Florida Statutes would be required. The petition seeks the Office’s interpretation on the following: 1. A Consumer Finance Loan for purposes of Section 516.01 is a loan that is both (a) for an amount of less than Twenty-Five Thousand Dollars ($25,000); and (b) for an interest rate of greater than eighteen percent (18%) per annum. Thus, for example, our client will not be considered to be making Consumer Finance Loans, regardless of the amount of the loan, so long as the interest rate is eighteen percent (18%) per annum or less. 2. There is no state licensing requirement in Florida for a person or entity that provides loans to consumers that do not fit the parameters of Section 516.01. In other words, our client would not need a Florida license to provide a loan to a consumer if the loan in question does not fit the parameters of Section 516.01. 3. The licensing requirements of Section 516 do not apply to loans made to businesses (e.g., florists, dentists, contractors, etc.). Is there a licensing requirement comparable to Section 516 that would apply to the making of loans to small businesses? 4. The limitations on finance charges and maximum rates of interest set forth in Section 516.031 apply only to loans that qualify as Consumer Finance Loans under Section 516. The statute appears to be silent, however, about a loan that is not a Consumer Finance Loan. Thus, we would like clarification as to whether a loan to a consumer would be considered a Consumer Finance Loan, despite the fact that it is for less than Twenty-Five Thousand Dollars ($25,000), at eighteen percent (18%) interest), because it provides for a higher rate of interest upon default and/or the imposition of late fees.

A copy of the Petition for Declaratory Statement may be obtained by contacting: Agency Clerk, Office of Financial Regulation, P.O. Box 8050, Tallahassee, Florida 32314-8050, [phone], [e-mail].

Please refer all comments to: Agency Clerk, Office of Financial Regulation, P.O. Box 8050, Tallahassee, Florida 32314-8050, [phone], [e-mail].