Category: Criminal Offenses · Statute: F.S. 687.071 · Source: Florida Legislature
Understanding Usury (Criminal) in Florida
In Florida, criminal usury—commonly referred to as loansharking—occurs when a lender willfully charges, takes, or receives interest on a loan at a rate exceeding 25 percent per annum. Under Florida Statute Section 687.071, the state distinguishes between two tiers of criminal usury based on the severity of the interest rate. Charging an interest rate greater than 25 percent but not exceeding 45 percent is classified as a misdemeanor of the second degree. However, if the interest rate exceeds 45 percent, the offense escalates to a third-degree felony. Furthermore, knowingly possessing records of usurious debt or using extortionate means to collect these illegal debts can result in second-degree felony charges.
To secure a conviction for criminal usury, Florida prosecutors must prove that the lender possessed the specific intent to charge an unlawful rate of interest. This offense frequently arises in informal lending arrangements, unlicensed payday lending operations, or predatory business-to-business transactions where lenders attempt to bypass traditional banking regulations. Because Florida law voids the entire debt—both principal and interest—for contracts found to be criminally usurious, these cases often involve complex financial audits and overlapping civil litigation alongside the criminal prosecution.
Bail and Pretrial Release for Criminal Usury Charges
When an individual is arrested for felony criminal usury in Florida, judges setting bail often scrutinize the source of the funds used to secure release. Under Florida law, if there is probable cause to believe that the money used for a bail bond or cash bail was generated through the alleged usurious lending enterprise, the state may file a Nebbia motion. This requires the defendant to prove that their collateral and premium payments come from legitimate, non-criminal sources before they can be released from custody.