Consumer Finance Company License Requirements

How does Florida regulate and authorize licenses?   

A “license” to regulate professions and occupations means any permit, registration, certificate, or license issued in Florida. An occupational license is a privilege accorded by the state or its subdivisions to conduct a business at a particular location and is not a property right protected by substantive due process; the denial of such license does not prevent the business owner from pursuing a lawful occupation but merely stops the business from operating at a particular location. Ammons v. Okeechobee County, 710 So. 2d 641 (Fla. 4th DCA 1998).  

On July 1, 2021, the Florida Legislature passed Section 163.211 into law, which prevents any county, municipality, or other political subdivision of Florida from implementing additional licensing requirements for most occupations. Therefore, a prospective applicant only needs to satisfy state statutory requirements. 

Need help receiving, renewing, or defending your license? Schedule your consultation today with a top administrative law and licensing attorney.  

Which laws and regulations apply to consumer finance company licenses in Florida?  

The Office of Financial Regulation (OFR) regulates consumer finance company licenses in Florida. This state entity oversees compliance with relevant laws and regulations to ensure licensees provide financial services under established standards. 

The primary statute governing consumer finance company licenses in Florida is the Florida Consumer Finance Act (Chapter 516, Florida Statutes). This statute outlines the various requirements and regulations for companies seeking licensure. Additionally, the OFR has promulgated administrative rules in the Florida Administrative Code (FAC) that provide further guidance on the licensing process, including Chapter 69V-160, which outlines specific procedures and requirements for consumer finance company licenses. 

What are Florida’s application and retention requirements for consumer finance company licenses? 

Application Requirements:

Applicants must satisfy several criteria outlined in the Florida Consumer Finance Act and the Florida Administrative Code to apply for a consumer finance company license in Florida. Essential application requirements include the following: 

• Applying: Applicants must submit a completed application form, as provided by the OFR, containing detailed information about the applicant’s business operations and principals. 
• Investigation fee: Payment of an investigation fee must accompany the application.  
• Net worth requirement: Companies must demonstrate a minimum net worth, as Section 516.05, Florida Statutes requires. 
• Surety bond: Licensees must obtain and maintain a surety bond to ensure financial responsibility. 

Retention Requirements:

To retain a consumer finance company license, licensees must adhere to ongoing requirements outlined in the Florida Consumer Finance Act and the Florida Administrative Code. Essential retention requirements include: 

• Annual report: Licensees must submit an annual report to the OFR on the company’s financial status and operations. 
• License renewal: Licensees must renew their licenses annually. 
• Recordkeeping: Licensees must maintain accurate and complete financial transactions and business operations records, as specified in Section 516.11, Florida Statutes. These records must be available for inspection by the OFR upon request. 
• Net worth and surety bond maintenance: Companies must maintain the minimum net worth and surety bond requirements established during the initial licensing process to ensure ongoing financial responsibility. 
• Reporting changes: Licensees must promptly notify the OFR of significant changes in their business operations, management, or financial condition.  

To determine whether you meet the consumer finance company license requirements, please contact our office to set up your initial consultation. 

Can the OFR’s license decision be appealed?  

Yes, an adverse license decision made by the OFR is appealable. The authority for appealing such decisions comes from the Florida Administrative Procedure Act (APA), Chapter 120 of the Florida Statutes. The APA establishes the framework for challenging agency actions, such as licensing decisions, through administrative hearings and judicial review. The right to appeal derives from Florida Statutes §120.569 and §120.57.  

If an applicant or licensee receives an adverse decision from the OFR, they may request an administrative hearing to challenge it. The request for a hearing must be submitted within the timeframe specified in the agency’s notice, which is generally 15 days from the date of the notice, as provided in Section 120.569(2)(a), Florida Statutes. 

The administrative hearing process commences with submitting a petition for a hearing to the agency. The petition must comply with the requirements outlined in Rule 28-106.201, Florida Administrative Code. If the petitioner qualifies for an administrative hearing, the case is referred to the Division of Administrative Hearings (DOAH) and assigned to an administrative law judge (ALJ). 

The ALJ conducts the hearing, like a trial, with both parties presenting evidence and testimony. After the hearing, the ALJ issues a recommended order, which includes findings of fact, conclusions of law, and a recommendation for a final decision. The OFR then reviews the recommended order and issues a final order, either adopting, modifying, or rejecting the ALJ’s recommendations. 

Suppose the petitioner is unsatisfied with the OFR’s final order. In that case, they can seek judicial review by filing a notice of appeal with the appropriate District Court of Appeal, as provided in Section 120.68, Florida Statutes. The court reviews the case to determine if the agency’s decision follows from competent, substantial evidence and complies with the law. 

Have more questions about a professional licensing-related situation?  

Crucially, this overview of consumer finance company licenses does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances. 

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively. 

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant. 

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.