Consumer Finance Company License Requirements in Florida

Starting a consumer finance business in Florida requires careful attention to state regulations, particularly the licensing requirements set forth by the Florida Office of Financial Regulation (OFR). If your company intends to offer consumer loans of $25,000 or less at an interest rate exceeding 18%, you must obtain a Consumer Finance Company License under Chapter 516 of the Florida Statutes.

Understanding these requirements is essential to avoid regulatory pitfalls and ensure smooth operations. This guide outlines everything you need to know about obtaining and maintaining a Consumer Finance License in Florida.

What Is a Consumer Finance Company License?

A Consumer Finance License allows businesses to legally originate, service, and collect on consumer loans within Florida. This license is required for companies that:

• Provide loans of $25,000 or less to individuals.
• Charge an interest rate above 18% annually.
• Operate as non-bank lenders offering personal loans.

Who Needs This License?

This license is required for:

• Consumer lending companies providing unsecured or secured loans.
• Retail finance businesses offering installment payment plans.
• Auto finance lenders and other loan servicers.

If your business provides financing directly to consumers, this license ensures compliance with Florida’s lending laws.

Legal Requirements for a Consumer Finance License

To qualify for a license, applicants must meet several key financial, legal, and operational requirements:

1. Financial & Net Worth Requirements

• The business must maintain a minimum net worth of $25,000.
• Proof of sufficient financial reserves to operate legally.

2. Background & Character Evaluation

• Owners and key executives must pass criminal background checks.
• The OFR will review the moral character of applicants, including past financial conduct.

3. Business Structure & Registration

• Must be a legally registered corporation, LLC, or sole proprietorship.
• Must have a designated control person responsible for compliance.

4. Surety Bond or Alternative Security

• Some applicants may need to secure a surety bond or alternative financial security to cover consumer claims.

Step-by-Step Application Process

1. Register & Apply Through NMLS

The Nationwide Multistate Licensing System (NMLS) handles the licensing process. Applicants must:

• Create an account on NMLS.
• Complete the Florida Consumer Finance License application.

2. Submit Required Documents

Applicants must provide:
✓ Business formation documents (e.g., Articles of Incorporation)
✓ Personal and business financial statements
✓ Credit history and background checks
✓ Business plan outlining lending operations

3. Pay Application Fees

• Initial application fee: $625
• Filing fee: $200
• Fingerprint processing fee: $36.25 per individual

4. Wait for Approval

• The review process typically takes 60–90 days.
• The OFR may request additional documentation before issuing the license.

Compliance Requirements After Receiving the License

Once licensed, consumer finance companies must comply with ongoing legal obligations, including:

1. Annual Reporting

• File an annual financial report with the OFR.
• Pay renewal fees to maintain the license.

2. Record-Keeping & Consumer Protections

• Maintain detailed loan records for at least 3 years.
• Ensure compliance with Florida consumer protection laws.

3. Regulatory Examinations

• The OFR conducts periodic audits to ensure compliance.
• Non-compliance can lead to fines, penalties, or license revocation.

Common Challenges & How to Avoid Them

1. Application Rejections

• Common Issue: Incomplete or inaccurate applications.
• Solution: Work with an attorney to ensure all documentation is correctly submitted.

2. Financial Requirement Issues

• Common Issue: Failing to meet the $25,000 net worth requirement.
• Solution: Maintain strong financial records and provide adequate supporting documentation.

3. Compliance Violations

• Common Issue: Failure to file annual reports or update the OFR on business changes.
• Solution: Set internal compliance reminders and seek legal guidance on reporting requirements.

Navigating Florida’s Consumer Finance Company License process can be complex, but ensuring compliance is critical to your company’s success. Munizzi Law Firm specializes in business law and financial licensing, helping companies secure and maintain the proper licenses with confidence.

Need assistance with your application or compliance? Contact Munizzi Law Firm today to schedule a consultation.