CS/CS/HB 895 Summary

• Allows applicants and licensees to satisfy the $25,000 liquid asset requirement with a surety bond, certificate of deposit, or irrevocable letter of credit instead of cash assets.

• Prohibits consumer finance lenders from charging prepayment penalties for loans paid off early.

• Updates references in the Florida Consumer Finance Act from the "Board of Governors of the Federal Reserve System" to the "Consumer Financial Protection Bureau" regarding Truth in Lending Act regulations.

• Requires all loans made on or after October 1, 2021 to have a minimum term of at least 6 months.

• Modifies Financial Technology Sandbox exceptions to allow applicants to use alternative capital sources (bonds, certificates of deposit, or letters of credit) instead of liquid assets while meeting sandbox requirements.

• Takes effect October 1, 2021.