Implications of non-payment: There are no financial implications. If no payment is made the loan simply defaults. Collection practices include sending a text message or email reminding the client payment is due. There is no impact to a client's credit score for late or non-payment. Loans are renewed when an interest payment is made. APR does not exceed 24%.
As per Florida Statue 539.001 Paragraph (11)(A) The pawnbroker may charge any amount of pawn service charge, so long as the total amount, inclusive of the interest component, does not exceed 25 percent of the amount financed for each 30-day period in a pawn transaction, except that the pawnbroker is entitled to receive a minimum pawn service charge of $5 for each such 30-day period.
There are no additional fees or penalties when renewing a loan. No loans offered are under 60 days. Early prepayment options that are available are not associated with any fees or cost. The loan is not required to be repaid within 60 days. The minimum repayment period is 1 day and maximum is 10 years. An example of a loan is: borrower takes $100, repays $120 in 60 days 100 Principal + 2.00 Interest and 18.00 in service fee. Loan is fulfilled.
