Payday Loans

Georgia Payday Loan laws

As per Georgia payday loan laws, payday lending is completely illegal in the state. Georgia was the first state to realize the dangers of payday loans and how it can put the consumers into a viscous cycle of ever-growing debts. It is true that there are over ten thousand financial institutions in the United States of America that offer these types of short-term cash advances and that payday lending has become a multi-billion industry (the growth has been overwhelming in the last few years), but it is also true at the same time that Internet payday loans and the ones that are offered through brick and mortar companies have actually pushed thousands of consumers very deep into an ocean of debt; many of them are getting bankrupt when they fail to make the repayment. In view of all these facts, the ban on payday loans in Georgia has received a warm welcome.

What If The Lenders Are Located At Another Place While You Are A Resident Of Georgia?

Many people wonder whether the Georgia payday loan laws apply in their case even if they are residents of this state; the confusion arises especially when the lender is located at some other place. Here, it is very important for you to keep in mind that in case of payday loans, the laws in your state apply regardless of where the office of your lender is located at. It means even Internet payday lenders may not issue short-term cash advances to the residents of Georgia. If they do, it will be considered as an illegal activity and you can file complaints against them. Though no legal actions can be taken against you for borrowing a payday loan in Georgia, you will still have the obligation to pay off at least the principal amount (without any interest or other charges).

Usury Laws

As per the Georgia payday loan laws, small loan rate cap applies in this state for cash advances issued for a very short period of time. On up to a $3000 of cash advance, a lender cannot charge more than 8% (per annum) interest. As per the Industrial Loan Act of 1955 applicable in the state of Georgia, the usury laws is applicable for all types of lenders.

Violation Of Truth In Lending Act

As per the Truth in Lending Act of the United States of America, it is legally mandatory for a lender to disclose all the charges involved in a loan program very clearly (there should not be any hidden clause). If you are sure that your lender has violated this Act, you can file your complaint with the FTC (Federal Trade Commission). Though FTC is not responsible to resolve the problem, it will definitely take strict actions in this regard and educate the consumer on how to proceed with the legal procedure regarding such violations.

Where Can You Complain Against Lenders Who Violate Georgia Laws?

It is important to note that the Governor’s Office of Consumer Affairs does not accept complaints regarding payday lending. If you have any complaint, you will have to contact the Georgia Office of the Commissioner of Insurance. You can fax them at (404) 657-8542, call them at (404) 656-2070, or write them at Industrial Loan Division, Two Martin Luther King, Jr. Drive West Tower, Suite 704 Atlanta GA 30334.

If the lenders are found to have violated the Georgia payday loan laws, felony and racketeering charges may be applied against them, which include 25 years of jail sentence and/or $25000 of monetary fine (for every violation). The actual level of punishment depends on the severity of the offence and how seriously the consumers get affected because of illegal payday lending.

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Posted in Payday Loan Laws, Payday Loans | 1 Comment »

One Response to “Georgia Payday Loan laws”

  1. Robert says:

    Georgia has banned the payday lending totally. Georgia was the first state of doing so. Pay day loans actually pushes its consumers into a situation of financial insolvency that’s why it is completely illegal in Georgia. The state authorities are very serious about the welfare of its residents and they have understood the reality of payday loans. The small loan can be taken for a very short period of time and the interest can not be charged more than 8 % pa. It is known as usury laws and it has to be followed by every one. The most interesting fact is that if you are a resident of Georgia and you have taken a cash advance from a company situated outside Georgia, the company will have to follow the rules of the state of Georgia. If you find your lender involved in any illegal activity, you can complaint against your lender. There is a lending Act in USA according to this creditors has to show all the charges in the contract program, there should be no hidden charges, if you find that your creditor is not giving you the truth, you can file your complaint with FTC.

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