580% APR Payday Loan Case Raises Serious Usury Risks for Lenders

A Florida man is suing Direct Debt Portfolio Management and Forest Hill Account Management over a $700 payday loan with a 580% annual percentage rate. Antquan Taylor, the plaintiff, claims this sky-high APR violates Florida’s usury laws.  

According to the lawsuit, Florida caps interest rates at 18% annually. Interest rates above this rate are considered usurious, and interest rates above 25% are considered criminally usurious. Loans made with interest rates that are found to be usurious under Florida statutes are void under Florida law. 

Taylor also alleges the defendants used unlawful debt collection practices related to the $700 payday loan in violation of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

The Fair Debt Collection Practices Act is a federal law that prohibits debt collectors from using unfair or deceptive practices when collecting debts. The federal Fair Credit Reporting Act covers how debts and other financial matters can be reported on credit reports. 

Details of the Payday Loan

Taylor received a short-term loan from Plain Green in April 2024. The loan had an interest rate of 580%, and Taylor used the money for goods and services for himself and his family. He paid a considerable amount of the loan back to Plain Green, but most of his payments were applied to the extreme interest rate charged on the loan. 

Prior to October 2025, Plain Green assigned the loan’s charged-off balance of $1,952 to Direct Debt. Later that month, the debt was placed for collection with Forest Hill Account Management.

A Closer Look at Payday Loans

A payday loan is a short-term loan that is usually due on a consumer’s next payday. These loans are available in storefronts and online. There is no credit check, and these loans come with high interest rates.

According to the Consumer Financial Protection Bureau, a typical, two-week payday loan can have an APR of almost 400%. Many states cap the cost of payday loans, the loan’s fees, and the amount of the payday loan. 

Impact of Lawsuit with 580% APR Payday Loan

High profile criminal usury cases such as this one can prompt regulatory changes and set legal precedents for hundreds of thousands of other borrowers in states with a great deal of payday lending activities. This is the impact for consumers. 

Even a one-off case such as this can bring scrutiny and potential regulatory crackdown on lending practices. That’s why how this lawsuit plays out is of interest to payday lenders and other lenders.

The Bottom Line

A Florida man is suing over a $700 payday loan with a 580% APR. He claims the interest rate violates Florida’s usury law and that his rights under the federal Fair Debt Collection Practices Act and Fair Credit Reporting Act were violated during the collection of the debt.  

Cases such as this lawsuit filed in Florida may lead to greater scrutiny of payday lenders and even prompt regulatory changes and a crackdown of lending practices, depending on the outcome.