Learn how regulators can improve the effectiveness of service and maintain market integrity using real-time technology to ensure that all licensed payday lending activity is in compliance with State Law.

Veritec Solutions implemented a "first of its kind" payday lending regulatory solution for the State of Florida that includes a 24 x 7 real-time, e-business, centralized database in addition to a toll-free call center to handle regulatory questions from the business and consumer communities. 

Below are highlights of the Florida program. Contact Veritec to learn how we can assist your State to implement a custom solution for effective regulation of the payday loan industry.

Florida has established an effective regulatory environment for Payday Lending that provides a legitimate financial product for consumers while providing protection from fraud and abuse. The key components required to establish this environment are:

• Self funding program – no state funds were utilized to start or maintain the program, program is funded by the industry 

• Required use of internet-based centralized Database for  registration of all payday lending transactions

• Small transaction fee paid by the industry for each transaction processed

•  Protects consumer rights

• Consumer rights to credit counseling and grace period

• Consumer right to back-out of transaction within 24 hours with no fees

• Clear product guidelines for borrowing limits, fees charged, term and usage

• Prevents fraud and abuse

• Readily available means to report issues, answer questions and resolve disputes

• Consumer and Provider ability to resolve questions, issues and disputes via a customer call center capable of promptly responding to calls with qualified personnel.  The call center is empowered to resolve disputes arising between Consumers and Providers.

• Ability to promptly report unlicensed or non-compliant activity

• The State acts as an ombudsman for dispute resolution

• Prevents the spiraling cycle of short term consumer debt

• Eliminates rollovers - Consumers are only eligible for a payday lending transaction if they meet eligibility requirements (e.g. within legal limits, have not had an open payday loan in the last 24 hours, have not exceeded any imposed rollover limits, etc.)

• The Database only permits allowable amounts, fees and terms to be used for a payday transaction

• Required use of an internet-based centralized Database to check consumer eligibility

• Provides regulatory authority and resources to monitor statewide activity

• Centralized Database enables up-to-date monitoring of transaction activity and identification of suspicious activity

• Field examinations utilize Database for comparison to physical records and identification of non-compliant activity

• Very efficient audit process which lowers the overall cost of monitoring of the program

• Only licensed providers have access to the Database making unlicensed activity easier to identify and enforce

•  Ability for legitimate Providers to be successful

• Program allows a well-managed and compliant business to be successful

• Since implementation, this industry is growing in Florida (ref. Annual Report)

  • 10 percent annual rate of growth in provider   locations

  • Over 20 percent annual rate of growth in payday loan transactions

• Protects licensed Providers from losing business to unlicensed activity

• Program creates a level playing field; provides valuable information on consumer eligibility

• The database protects the industry by preventing loans to consumers that already have an outstanding payday loan.   Note that volume of loans that are not collected for the Florida Industry has dropped to a level of less than 3 percent since implementation of the database.  Compare this to the prior average of over 6 percent based on direct Industry feedback.

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