News & Resources

Bennett bill would raise short term loan ceilings

Oct 17, 2011 Todd Milner

Bradenton, Florida, Senator Mike Bennett has sponsored a bill that may negatively affect Floridians who attempt to take out short term loans - only he doesn't know it yet, the Bradenton Herald reports. Bennett told the news source that one of his staff members prepared Bill 438, which was filed last week, and he has yet to read over the details. What Bennett would find is a proposed increase on the ceiling for short term loan interest rates. Florida law allows lenders to charge interest rates of 30 percent per year on the first $2,000 taken out, and then lowers the rates as the amount decreases. However, the new bill would increase that ceiling to $3,000, which would have a ripple effect on other ceilings. Loans between $3,001 and $4,000 would see a 28 percent interest rate, and loans between $4,001 and $25,000 would see an 18 percent. "I'm not interested in many things that raise interest rates," Bennett said, as quoted by the news source. The Huffington Post reports that Bennett's reputation hit a snag last year when video footage captured the senator looking at pornography on his laptop. Bennett claimed the pornographic image came from a spam email he opened unintentionally.