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 All rights reserved. No part of this article may be reproduced or utilized in any form, other than for the reader's sole personal use, without permission in writing from the author. NOTICE: The information in these articles is provided for general informational purposes only as a public service. You are advised to check for changes to current law and to consult with a qualified attorney in your state of residence on any legal issue. The use of this material does not create an attorney-client relationship with the Rachel Lea Hunter Law Office. The material in this website may be considered advertising under applicable rules.