Deferred Presentment Providers

Definition
A "deferred presentment provider" is a person who engages in a deferred presentment transaction, which is to provide currency or a payment instrument in exchange for a person's check and agreeing to hold the person's check for a period of time prior to presentment, deposit, or redemption.

Licensing Requirements

All persons who desire to become a deferred presentment provider must be licensed as a Money Transmitter pursuant to Chapter 560, F.S., Part II or Part III. To engage in such business, the registrant or applicant must submit a Declaration of Intent to Engage in Deferred Presentment Transactions (OFR-560-03) together with the required $1,000 fee. No activity can commence until properly registered to do so.

DPP Database
Once licensed with the Office, deferred presentment providers are required to process their customer transactions through the Deferred Presentment Transaction System. Customer support and training information are also available at this website address.

Consumer Credit Counseling Agencies
Section 560.404(22), F.S. provides that any consumer who informs a provider, in person, prior to the due date in the agreement that they will be unable to pay the transaction in full shall be given a 60-day grace period extending the term of the agreement without additional charges. The grace period is available provided that the consumer makes an appointment within 7 days to complete consumer credit counseling within the grace period.

The Office maintains a listing of nonprofit consumer credit counseling agencies that have requested to provide such assistance to Florida residents.

Background
Effective October 1, 2001, the State of Florida enacted new legislation regarding Money Transmitters and deferred presentment transactions. The legislative intent is to provide for the regulation of deferred presentment transactions, and to prevent fraud, abuse and other unlawful activity associated with deferred presentment transactions, in part by:

A. Providing for sufficient regulatory authority and resources to monitor deferred presentment transactions.

B. Preventing rollovers.

C. Regulating the allowable fees charged in connection with a deferred presentment transaction.