3/24/2025 – The American Association of Private Lenders has just been made aware of Florida Senate Bill 392, which if passed, will set new requirements to collect default interest.

The State of Florida already requires that, at minimum, lenders provide borrowers with an annual statement of payments made. SB 392 “Requirements of Lenders of Money” clarifies the contents of the annual statement, but also adds a new provision: Lenders must issue a written notice of default in order to collect default interest.

Additionally, if requested by the borrower, following the sale or assignment of a loan the assigning lender must provide a loan history report. Within 30 days of assignment, the assigned lender must provide a statement to the borrower that includes detailed breakdowns of loan history and any balance changes.

If passed, SB 392 will take effect on July 1, 2025 and would be retroactive to all existing loans. The bill’s sponsor is District 36 Senator Ileana Garcia (R).

Key points:

  1. Lenders may not collect default interest without first issuing a written notice of default.
  2. The assigning lender must issue a loan history report following loan sale/assignment, but only if requested by the borrower.
  3. The assignee lender must issue a loan history and balance change statement within 30 days of assignment. (It is not clear if this statement is always required or only triggered by “changes to outstanding balances.”)
  4. This is retroactive.

With a proposed near-future start date for notices that require time to develop both procedures and forms, AAPL is currently working with our Florida partner organizations and contacts in the Senate to determine the bill’s likelihood of passing and next steps to respond to these proposed changes. While the bill has been introduced and referred to the Senate Committees for Banking and Insurance; Commerce and Tourism; and Rules; it does not yet have a corresponding bill in the Florida House of Representatives.

We will provide updates here, including any developments to the bill, our response, and grassroots action needed. If you are not already subscribed to updates, become a Friend of AAPL here: https://aaplonline.com/friends-of-aapl/.