The Federal Trade Commission has the authority to prosecute lenders who violate federal anti-predatory loan laws and the Equal Credit Opportunity Act. Under federal law, lenders who deny credit to applicants based on their credit history must provide them with written reasons for denying them credit. States can enact additional consumer protection regulations. In Florida, the Office of the Attorney General has the authority to investigate violations of the Fair Credit Reporting Act in conjunction with the Federal Trade Commission.
Florida Office of Financial Regulations
The Division of Finance within the Florida Office of Financial Regulations is responsible for regulating loan originators, lenders and brokers; money service businesses, including check cashers and deferred presentment providers; title loan lenders; retail sales lenders, including motor vehicle leasing companies, auto sales lenders and home improvement finance lenders; collection agencies; and mortgage lenders. Florida law requires mortgage brokers and lenders to obtain licenses before they can transact business with Florida residents. Furthermore, loan originators and mortgage modification companies must obtain specialized licensing.
Florida Law
The Florida Fair Debt Collection Practices Act is identical to the federal law, but provides Florida residents with additional opportunities to dispute their credit denials. The act covers household and personal debts, including medical debts, automobile loans, credit card debts and retail service installment contracts. The act governs the procedures lenders must follow when collecting debts from borrowers. Additionally, the Florida Attorney General can pursue complaints against lenders who deny credit to applicants based on discriminatory reasons, and lenders can face criminal and civil penalties.
Federal Equal Credit Opportunity Act
The federal Equal Credit Opportunity Act prohibits lenders from denying credit to applicants based on their race, gender, origin, religion, disability or family status. Under federal law, lenders have 30 days to provide written responses to applicants about whether their applications are denied or approved.
The federal credit laws require lenders to state their reasons for denial in their loan response letters and provide applicants with information on how they can dispute their denials. Furthermore, lenders' written disclosure letters must provide applicants with instructions on how to request further information regarding their decisions to deny credit.
Florida Attorney General
According to the Florida Office of the Attorney General, credit card companies, banks, insurance lenders and any other agency relying on information obtained through credit reporting agencies must provide borrowers with free copies of their credit reports if they deny their credit applications and borrowers officially request that information. If they approve a borrower's application, they can charge a nominal or reasonable fee for providing a copy of the credit report.
Considerations
Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.
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