Florida Gov. Ron DeSantis on Monday vetoed a bill that would have allowed interest rates as high as 36 percent on consumer-finance loans.
The bill (HB 1267), which passed during the legislative session that ended May 5, would have replaced a tiered system that allows interest rates ranging from 18 percent to 30 percent, based on loan amounts.
“This increase in rates may result in additional indebtedness and could exacerbate the pinch already being felt due to federal government-induced inflation,” DeSantis wrote in a veto message.
Before the Senate passed the bill, Senate sponsor Joe Gruters, R-Sarasota, said the change would “expand credit opportunities” for consumers.
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Gruters and other supporters said it would help provide alternatives to consumers who now borrow money online at higher interest rates. Under Florida law, companies can charge 30 percent annual interest on the first $3,000 of principal amounts, 24 percent on amounts between $3,000 and $4,000, and 18 percent on amounts between $4,000 and $25,000.
The bill would have set an across-the-board maximum annual 36 percent rate. It also would have increased regulations on consumer-finance companies, including requiring that they submit annual reports to the state detailing loan data.
Gruters has drawn attention recently because he is supporting former President Donald Trump over DeSantis in the 2024 Republican presidential primaries.
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