69V-160.017: Application of Payments
69V-160.019: Monthly Installments Defined
69V-160.037: Collection Practices
69V-160.111: Disciplinary Guidelines
PURPOSE AND EFFECT: Rule 69V-160.017, F.A.C., is amended to remove the requirement for interest to be paid in full-day amounts. Computer systems allow interest to be considered in aggregate rather than on a full-day basis. The amendment will ensure that payments are not held and applied at a later date, which could be detrimental to the borrowers account by generating additional interest or the possible creation of late fees. Rule 69V-160.019, F.A.C., is amended to require interest for any deferred period to be added to the first installment payment to ensure that the overall calculated payment is not increased as the result of the deferred payment. Rule 69V-160.037, F.A.C., is created to identify collection practices that are deemed unreasonable. Rule 69V-160.111, F.A.C., is amended to provide a maximum penalty of revocation for violations of Sections 516.07(1)(c), 516.07(1)(j), and 516.07(1)(n), F.S., which relate to the failure to demonstrate financial responsibility, experience, character or general fitness; pleading nolo contendere to, or having been convicted or found guilty of, certain crimes; and failure to pay fees, charges or fines, respectively.
SUBJECT AREA TO BE ADDRESSED: Consumer Finance.
SPECIFIC AUTHORITY: 516.22(1), 516.23(3) FS.
LAW IMPLEMENTED: 516.02, 516.031, 516.035, 516.05, 516.07, 516.12, 516.15, 516.16, 516.17, 516.21, 516.31, 516.35, 516.36 FS.
IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE NOTICED IN THE NEXT AVAILABLE FLORIDA ADMINISTRATIVE WEEKLY.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Andy Grosmaire, Chief, Bureau of Finance Regulation, Office of Financial Regulation, The Fletcher Building, 200 E. Gaines Street, Tallahassee, Florida 32399, (850)410-9848, andy.grosmaire@flofr.com
THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:
69V-160.017 Application of Payments.
Each payment shall be applied first to the accumulated interest charges and the remainder of the payment applied to the unpaid principal balance; provided that if the amount of the payment is insufficient to pay the accumulated interest charge, the unpaid accrued interest charge may continue to accumulate and the same may be paid from the proceeds of subsequent payments and shall not be added to the principal balance. No payment shall be accepted on the principal balance unless interest is paid to date or is waived by the licensee. Each payment received by the licensee shall be applied to borrowers account with an effective date of the date the payment was received in the licensees office or at any branch of the licensee. license, except such payment may be credited to the principal where the amount thereof is not sufficient to pay the interest due for one day.
Rulemaking Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.031(1) FS. HistoryRevised 10-20-73, Renumbered from 3-2.17 to 3D-160.17 on 8-11-75, Readopted 9-1-75, Formerly 3D-160.17, 3D-160.017, Amended________.
69V-160.019 Monthly Installments Defined.
Loans shall be made repayable in equal monthly installments, including both principal and interest, with interest charges calculated on the assumption that all scheduled payments will be made when due. Provided, however, if the repayment schedule is other otherwise than regular, the first installment period only may exceed one month by as much as fifteen (15) days, and the additional interest for such excess days shall may be added to the first installment payment.
Rulemaking Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.20(2), 516.36 FS. HistoryRevised 10-20-73, Renumbered from 3-2.19 to 3D-160.19 on 8-11-75, Readopted 9-1-75, Formerly 3D-160.19, 3D-160.019, Amended________.
69V-160.037 Collection Practices.
For purposes of Section 516.07(1)(f), F.S., a collection practice will be considered unreasonable if it constitutes a prohibited collection practice under Section 559.72, F.S.
Rulemaking Authority 516.22(1), 516.23(3) FS. Law Implemented 516.07(1)(f) FS. HistoryNew________.
69V-160.111 Disciplinary Guidelines.
Pursuant to Section 516.07(2), F.S., listed below is a range of disciplinary guidelines from which disciplinary penalties will be imposed upon any person guilty of violating Chapter 516, F.S. The disciplinary guidelines are based upon a single-act violation of each provision listed. Multiple acts of the violated provisions or a combination of violations may result in a higher penalty than that for a single, isolated violation. For purposes of this rule, the order of penalties, ranging from lowest to highest, is: reprimand, fine, probation, suspension, and revocation. Nothing in this rule shall preclude any discipline imposed upon a person pursuant to a stipulation or settlement agreement, nor shall the ranges of penalties set forth in this rule preclude the Office of Financial Regulation from issuing a letter of guidance when appropriate.
(1) No change.
(2) The minimum penalty for all below listed sections is a reprimand, and/or a fine up to $1,000.00 per act, or both. The maximum penalties are as listed:
(a) through (h) No change.
(i) 516.07(1)(c) Revocation
(j)(i) 516.07(1)(d) Revocation
(k)(j) 516.07(1)(e) Revocation
(l)(k) 516.07(1)(f) Suspension
(m)(l) 516.07(1)(g) Probation
(n)(m) 516.07(1)(h) Revocation
(o)(n) 516.07(1)(i) Revocation
(p) 516.07(1)(j) Revocation
(q) 516.07(1)(n) Revocation
(r)(o) 516.08 Reprimand
(s)(p) 516.12 Revocation
(t)(q) 516.15 Probation
(u)(r) 516.16 Probation
(v)(s) 516.17 Probation
(w)(t) 516.21 Probation
(x)(u) 516.31(3) Probation
(y)(v) 516.35 Probation
(z)(w) 516.36 Probation
(3) No change.
Rulemaking Specific Authority 516.22(1), 516.23(3) FS. Law Implemented 516.02, 516.031, 516.035, 516.05, 516.07, 516.08, 516.12, 516.15, 516.16, 516.17, 516.21, 516.31, 516.35, 516.36 FS. HistoryNew 3-20-91, Formerly 3D-160.111, Amended________.
