Florida governor signs bill to ease payday loan restrictions

TALLAHASSEE, Fla. (AP) - Florida is easing some of the restrictions for so-called payday loans.

Gov. Rick Scott signed a bill (SB 920) on Monday that doubles the current limit on the loans from $500 to $1,000 and allows lenders to give 60-to-90 day loans.

Consumer advocates have said the new rules will create a debt trap for poor people. Back in 2001, the state cracked down on loans where lenders give borrowers money in exchange for holding a postdated check as collateral.

Existing lenders have said they needed to change the law because of potential new federal regulations. Supporters contended that payday lenders might have had to shut down without the change.