Bill Text: FL S0392 | 2025 | Regular Session | Introduced
Bill Title: Requirements of Lenders of Money
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-28 - Filed [S0392 Detail]
Download: Florida-2025-S0392-Introduced.html
Florida Senate - 2025 SB 392
By Senator Garcia
36-01064-25 2025392__
1 A bill to be entitled
2 An act relating to requirements of lenders of money;
3 providing a short title; amending s. 687.08, F.S.;
4 requiring lenders of money or the agents, officers, or
5 other representatives of such lenders to provide a
6 dated receipt under certain circumstances; clarifying
7 additional requirements for such lenders; creating s.
8 687.085, F.S.; requiring lenders of money or the
9 agents, officers, or other representatives of such
10 lenders to give a specified notice to the borrower and
11 all obligors of the loan within a specified timeframe;
12 requiring that such notice be sent to certain mailing
13 addresses and, if provided, e-mail addresses;
14 specifying the content of such notice; prohibiting
15 default or delinquency interest charges under certain
16 circumstances; requiring such lenders or the agents,
17 officers, or other representatives of such lenders to
18 provide to the borrower monthly statements after
19 initial notification to the borrower and obligors;
20 specifying requirements for such statements; providing
21 applicability; providing a penalty for lenders who
22 fail or refuse to comply with certain provisions;
23 amending s. 701.01, F.S.; requiring the assignor of a
24 mortgage loan to provide, within a specified
25 timeframe, a copy of the loan history statement to a
26 borrower or obligor upon request; requiring the
27 assignor to provide the first copy of the history
28 statement at no cost; authorizing the assignor to
29 charge its standard charge for additional copies of
30 such statement; requiring the assignee of a mortgage
31 loan to make specified notifications to the borrower
32 and obligor; specifying the requirements of such
33 notice; providing retroactive application; providing
34 an effective date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. This act may be cited as the “Default Interest
39 Transparency Act.”
40 Section 2. Section 687.08, Florida Statutes, is amended to
41 read:
42 687.08 Lenders of Person lending money to provide give
43 borrower receipt for payments; contents of receipt; penalty for
44 violation.—
45 (1) A lender of money in this state, whether a natural
46 person or an entity Every person, or the agent, officer, or
47 other representative of such lender any person, lending money in
48 this state upon security shall, whenever the borrower of such
49 money makes a payment of any money, either principal or
50 interest, immediately provide upon such payment being made, give
51 to the borrower a dated receipt that states, dated of the date
52 of such payment, which receipt shall state the amount paid, the
53 purpose of and for what such payment, and, as applicable, that
54 is made. If such payment is for interest on the sum borrowed or,
55 the receipt shall so state. If the sum so paid is to be applied
56 to the payment of the principal sum borrowed, the receipt shall
57 so state. Every Such receipt must shall be duly and properly
58 signed by such lender the person, or the agent, officer, or
59 other representative of such lender the person, to whom such
60 money is paid. In lieu of providing such receipt and in addition
61 to the requirements imposed under s. 687.085, such a lender may
62 provide furnish to the borrower an annual statement showing the
63 amount of interest paid on the loan during the previous year as
64 well as the remaining balance on the loan; except that a simple
65 receipt must shall be given to the borrower for each payment
66 that which is made in cash or for any payment for which receipt
67 is requested in writing by the borrower.
68 (2) Any lender that Whoever refuses, upon demand, to
69 provide give a receipt or statement in compliance complying with
70 the requirements of this section forfeits to the borrower all
71 shall forfeit the entire interest on the upon such principal sum
72 to the borrower.
73 Section 3. Section 687.085, Florida Statutes, is created to
74 read:
75 687.085 Required notifications by lender of money if
76 borrower defaults; penalty for violation.—
77 (1) If a borrower defaults on a loan and such default
78 allows a lender of money to recover additional interest on the
79 unpaid principal of the loan, whether at such lender’s option or
80 discretion or automatically under the loan’s term, such lender,
81 whether a natural person or an entity, or the agent, officer, or
82 other representative of such lender, must, within 45 days after
83 the default, give written notice to the borrower and all
84 obligors of the loan in compliance with subsection (2).
85 (2) The notice required under subsection (1) must be sent
86 to the borrower’s and obligor's last known mailing addresses as
87 recorded by such lender. If an e-mail address for the borrower
88 or the obligor has been provided, the notice must also be sent
89 to the most recent e-mail address on record. The notice must
90 include all of the following:
91 (a) A statement that the loan is in default.
92 (b) A description of the nature of the default.
93 (c) The interest rate currently accruing on the unpaid
94 principal of the loan.
95 (d) The amount of interest that will accrue daily, monthly,
96 and annually on the unpaid principal if the loan is not paid off
97 or the lender does not authorize a waiver of the default in
98 writing.
99 (3) Except in cases where the default arises from the
100 borrower’s failure to pay a loan in full by the maturity date
101 specified in the loan contract, default or delinquency interest
102 charges may not be applied retroactively or in arrears for more
103 than 45 days before the date the lender provides the required
104 notice to the borrower and obligors under this section.
105 (4) After the initial notification to a borrower and
106 obligors as required under this section, the lender, or the
107 agent, officer, or other representative of the lender, shall
108 provide to the borrower monthly statements. Each statement must
109 include all of the following information:
110 (a) Payments received since the previous statement.
111 (b) The allocation of each payment to interest, principal,
112 or other charges.
113 (c) The total unpaid balance of the loan, including
114 interest and penalties.
115 (d) The current interest rate and the rate accruing on the
116 unpaid principal of the loan.
117 (5) This section applies to loans that are accelerated for
118 default and on which such lender is charging delinquency
119 interest charges on the unpaid principal balance.
120 (6) This section does not apply to consumer loans governed
121 by chapter 520 or chapter 560.
122 (7) Any lender who fails or refuses to provide the notice
123 required by this section forfeits the right to charge additional
124 interest above the nondefault interest rate on the unpaid
125 principal of the loan for the duration of the noncompliance
126 period.
127 Section 4. Section 701.01, Florida Statutes, is amended to
128 read:
129 701.01 Assignment.—
130 (1) Any mortgagee may assign and transfer any mortgage made
131 to her or him, and the person to whom any mortgage may be
132 assigned or transferred may also assign and transfer it, and
133 that person or her or his assigns or subsequent assignees may
134 lawfully have, take and pursue the same means and remedies which
135 the mortgagee may lawfully have, take or pursue for the
136 foreclosure of a mortgage and for the recovery of the money
137 secured thereby. Within 10 business days after a borrower’s or
138 obligor’s request, the assignor of a mortgage loan shall provide
139 to the requesting borrower or obligor a copy of the loan history
140 statement, detailing payments and outstanding balances up to the
141 date of assignment. The first copy must be provided to the
142 borrower or obligor at no cost; however, the assignor may charge
143 its standard charge for a bank statement copy for any additional
144 copies of the loan history statement requested by the borrower
145 or obligor.
146 (2) In addition to complying with s. 687.085, the assignee
147 of a mortgage loan shall notify the borrower and obligor of any
148 changes to outstanding balances owed on the loan, including
149 changes to the loan history of payments and outstanding balances
150 of the loan as of the date of assignment. Such notification must
151 be included with the assignee’s first statement or notice of
152 amounts sent to the borrower or obligor, but no later than 30
153 days after the mortgage loan is assigned. The notification must
154 include all of the following information:
155 (a) The default relied upon by the assignee for the changes
156 made.
157 (b) An explanation of the assignee’s method of calculating
158 the additional charges.
159 (c) A detailed breakdown of the amounts claimed as owed,
160 including unpaid principal, interest, charges, or other amounts
161 under the loan contract.
162 Section 5. The amendments made by this act and s. 687.085,
163 Florida Statutes, as created by this act, are remedial in nature
164 and apply to all loans executed in this state before, on, or
165 after the effective date of this act which are not governed by
166 other specific regulations that charge additional interest on
167 the unpaid principal before the stated maturity date of the
168 loan, subject to the limits on interest charges imposed under
169 chapter 687, Florida Statutes.
170 Section 6. This act shall take effect July 1, 2025.
