Rachel Hunter, J.D.

Payday Lending in Georgia

Here is a link from the Georgia Department of Banking and Finance regarding payday loans: http://dbf.georgia.gov/payday-lending

Payday lending is largely prohibited in Georgia UNLESS the loan is made pursuant to the Georgia Industrial Loan Act (GILA) or is one of the other enumerated exceptions. O.C.G.A. § 16-17-2. Collection of a payday loan made in violation of the law is barred. O.C.G.A. § 16-17-3.

To be legitimate under GILA, the lender must be: (a) licensed; and (b) prohibited from charging more than 10% interest plus loan fees. O.C.G.A. § 7-3-8 and § 7-3-14. Payday loans are therefore legal to this extent.

Since lenders must be licensed and are limited to the fee they can charge, many payday lenders do not find it profitable to make legal payday loans. That does not stop them from violating the law and making the loans. However, it does mean that the lender cannot sue you or pursue any criminal charges as it would expose the lender to criminal charges. O.C.G.A. § 16-17-2(d). So a lawsuit by the payday lender is very unlikely.

Copyright (c) 2012 by Rachel Lea Hunter

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