Republic Finance, LLC on April 6, 2016.; The petition seeks the Office’s interpretation on the following: 1) Does Section 516, require a specific interest computation method or is either pre-computed or simple interest allowed? Section 516.031 ...

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

NOTICE IS HEREBY GIVEN that the Office of Financial Regulation has received the petition for declaratory statement from Republic Finance, LLC on April 6, 2016. The petition seeks the agency’s opinion as to the applicability of Chapter 516, Florida Statutes, as it applies to the petitioner.

The petition seeks the Office’s interpretation on the following: 1) Does Section 516, require a specific interest computation method or is either pre-computed or simple interest allowed? Section 516.031 seems to suggest that pre-computed interest is prohibited. 2) It is our practice to mail out guaranteed loan offers or what we call “live checks”. Are loans by mail permitted under Florida law? Section 516.07 (5) states that “This chapter does not prevent... the making of loans by mail”. Is there a specific statute that expressly permits loans by mail? 3) Does Florida law permit us to sell and finance our customers voluntary enrollment in a Motor Club (or an automobile club) product when accompanying the extension of credit? Section 624.124 seems to suggest that we can offer a Motor Club product. Does it authorize other home warrant sales? I see that Section 627.8405 prohibits “premium financing companies” from financing the premiums for membership in an automobile club, however I do not believe that Republic Finance would be considered a premium financing company under the Section 627.826 definition of premium financing companies which expressly exempts Section 516 licensees. Please confirm (i) that Republic Finance would not be considered a premium financing company if it is licensed under Section 516 and (ii) that Republic Finance can offer a Motor Club product. 4) Does Florida law permit us to offer an Involuntary Unemployment Insurance product when accompanying the extension of credit? Regulation 69V - 160.018 (c) suggests that offering this voluntary product is permitted. Please confirm. 5) Are Section 516 licensees permitted to add lawfully assessed fees to the principal and then charge interest on the entire loan balance? 6) Does Florida law have a specific provision regarding pay-off statements? Specifically, are we required (i) to provide a written pay-off quote, (ii) in a certain amount of days? And are we permitted to charge a fee for providing the pay-off quote? 7) Please explain the documentary excise tax and how that tax would affect Republic Finance.

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] or [e-mail].

Please refer all comments to: Agency Clerk, Office of Financial Regulation, P.O. Box 8050, Tallahassee, Florida 32314-8050, [phone] or [e-mail] by April 29, 2016.