TALLAHASSEE, FL - Self-Help Credit Union and the Center for Responsible Lending (CRL) congratulate advocates who worked to defeat a bill vetoed by Governor Ron DeSantis yesterday that would have increased interest rates on large personal loans made to Florida residents. Advocates from consumer groups, faith groups, legal services and others joined Self-Help and CRL in calling to reject the bill, which would have raised allowable interest rates on installment loans up to $25,000.
Adelcio Lugo, Self-Help’s Florida president, made the following statement:
This bill would have raised interest on large loans to an absurd level, allowing high-cost lenders to take more money out of the pockets of hardworking Floridians at a time when every penny counts.
Low-wealth Florida families are already targeted by predatory lenders who extract fees through exploitative practices. We congratulate the wide array of community groups who came together to defeat this bill. We celebrate this step toward stronger consumer protections and we will continue to support efforts to end predatory lending once and for all in our state.
Jared Pone, policy counsel for Center for Responsible Lending, made the following statement:
Raising the interest rate limit on large loans would have moved Florida backwards and saddled working families with additional high-cost debt. We found that the lenders leading the push for this change have made a practice of slipping in unnecessary add-on products that primarily benefit the lender, increasing the amount owed and keeping borrowers indebted for years. Vetoing this proposed legislation was the right move to protect Floridians from higher rates on such problematic loans. We commend the many groups who voiced their strong opposition to such a harmful bill.
Self-Help Credit Union, a community development institution with eight branches in Florida, is committed to providing greater access to fair, affordable financing options for underserved communities, including women, low-wealth families, immigrants and communities of color.
CRL, affiliated with Self-Help, works to ensure a fair, inclusive financial marketplace that creates opportunities for all families, regardless of their income, because too many hard-working people are deceived by dishonest and harmful practices.
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Press Contacts:
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Center for Responsible Lending: Carol Parish, carol.parish@responsiblelending.org
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Self-Help Credit Union: Jenny Shields, jenny.shields@self-help.org