Case Study:

Deferred Presentment (Payday Lending) Database and Program Solution

Client: State of Florida
Implementation Date: 2002
Scope of project: Connected more than 1,500 stores and lenders in the State of Florida
Result: More than seven million loans authorised per year, providing more than 3 billion dollars in credit while remaining compliant with Florida state law.


In 2001, the Florida Legislature was faced with mounting calls to regulate short-term, high cost consumer lending, commonly referred to as “payday lending.”

At the time, Florida consumers were caught in a dangerous situation; while consumer lending on a national scale had general regulatory oversight from the Federal Trade Commission and other federal agencies, gaps in the regulation of these entities at the state level made it possible for consumer to take out multiple short-term loans from various lenders at the same time. Many consumers found themselves with thousands of dollars in loans from several different lenders, all with the same due date. Loan extensions were available, but came with staggering fees. Additionally, states like Florida did not have specific statutes dealing with short term lending.

The Florida Legislature passed Senate Bill 561 in 2001 to establish a unique statutory code to regulate short-term, high cost consumer lending by limiting consumers to a single outstanding loan statewide; the law also prevents a lender from extending any loan for an additional fee. Florida needed a complex, real-time database management solution. Veritec stepped in to provide it.

“Veritec has changed the way regulators can now regulate. Instead of looking back to determine if compliance occurred, every transaction conducted and authorized is guaranteed to be compliant with state law.”

Since 2002, Veritec has provided the State of Florida with the Deferred Presentment Database and Program Solution (

This real-time database connects to more than 1,500 stores and lenders in the State of Florida, with integration across dozens of industry point-of-sale systems. This comprehensive network of information gives lenders an immediate and up-to-the-second snapshot of a consumer’s eligibility to obtain a deferred present loan in the State of Florida. With more than seven million loans authorized per year, totaling more than three billion dollars in credit, every single Florida loan authorized is in compliance with State law. Veritec now operates these programs in more than a dozen states, with more and more jurisdictions following suit in the United States and abroad.