The law that allows Florida Payday Loans states that the interest a lender can charge should not be more than 18% on any loan. It includes money advance, debt collection or line of credit. Direct or indirect interest rates, exchanges, discounts, advances and commissions are not included in this. Payday loan providers may not conduct a transaction with anyone who has another payday loan agreement outstanding.

According to the new law which came into effect from 1 October 2001 imposes regulation on the deferred presentment (payday loan) industry which provides payday loan cash in exchange for a person's check, and agree, for a fee, to hold that person's check for a period of time prior to redemption.

Florida Payday Loans Law seeks to protect consumers by limiting the amount of fees that can be charged, the length of time a check can be held, and requiring certain documentation. The new law also will require that every firm offering payday advance transactions be registered with the Department of Banking and Finance.