Payday loans in Georgia and the laws : Bad Credit Advisor

Payday loans in Georgia and the laws

Q: Can someone tell me what the core payday loan laws are in Georgia? I have just transferred in greater Atlanta area and would like to learn as much as I can. I intend to use them but my previous experience with pay day loan shops in other places was bad. If you can, please provide some locations in and around Atlanta, as well as other towns.

A: Georgia payday loan laws are considered quite stringent and were designed to protect a consumer, while still allowing a flexibility and a very speedy process that only payday loans can provide. A Georgia statute passed in May 2004 imposes stiff penalties for payday lending by non-banks and in-state banks. It is the first state law to expressly prohibit payday lenders from contriving with out-of-state banks to evade state usury limits. It is quite clear and also allows tough penalties for violation.

- payday lending is defined as including all transactions in which funds are advanced to be repaid at a later date, notwithstanding the fact that the transaction contains one or more other elements and a payday lender shall be one who engages in such transactions

- payday loan is defined as being $3,000 or less with the maximum interest rate of 16% APR, there is no mention of the typical features of a payday loan like taking and holding borrower’s personal check, and 2-week repayment term - the definitions used by Georgia law are intentionally broad, since payday loan lenders are adept at structuring their loans to get around the letter of the law - e.g. when few states defined a payday loan as a small loan repayable in 30 days or less, the payday lenders promptly made all their loans due in 31 days

The penalties, both civil and criminal for payday loans in GA are very stiff, in a nutshell, they have to be rather ignorant to violate them,

Civil penalties for Georgia payday lending are,
- Borrowers are authorized to sue for three times the amount of all interest and charges, plus attorneys’ fees and court costs. Class actions are specifically authorized.
- District attorneys and the Attorney General are also authorized to bring a civil action on behalf of the State seeking three times the amount of all interest and other charges. District attorneys may keep half of any recovery for their office budget.
- Illegal payday loans are declared void, and lenders are barred from collecting the indebtedness.
- Payday loan offices are declared a public nuisance.
- A tax equal to 50% of all proceeds received from illegal payday loans is imposed.
- Payday lenders are barred from obtaining certificates of authority to do business in Georgia from the Secretary of State and the Department of Banking and Finance. Payday lenders with existing certificates will face revocation.

Criminal charges are quite bad, they are,
- Payday lending is a misdemeanor of a high and aggravated nature. Punishment for the first three offenses is maximum 1 year in jail and up to $5,000 fine per violation. For the fourth and all subsequent violations, the crime is declared a felony, and punishment is up to 5 years in jail and up to $10,000 fine.
- Lenders engaged in a pattern of illegal payday lending may be liable for racketeering under the Georgia RICO laws. Existing RICO laws authorize felony prosecution with punishment of 5-20 years in jail, and a fine of either $25,000 or three times the amounts illegally gained. RICO also authorizes forfeiture proceedings in appropriate cases, and a civil remedy for victims of three times actual damages and punitive damages where appropriate.

I hope you feel better now, you can read this law in its entirety in PDF. With all that said, here are several payday loan shops in Georgia in alphabetical order,

Ace America's Cash Express, Ste B, 396 W Pike St, Lawrenceville, GA 30045
Advance America Cash Advance, 580 Atlanta Rd, Cumming, GA 30040
Advance America, 1424 Sam Nunn Blvd Perry, GA 31069
Advance America, 2801 Watson Blvd, Warner Robins, GA 31093
Advance America, 3701 Atlanta Highway Suite 20, Bogart GA, 30622
American General Finance, 220 W Lanier Ave, Fayetteville, GA 30214
American General Finance, 861 Holcomb Bridge Rd #210, Roswell, GA 30076
American Pawn Shop Inc, 1306 E Jackson St, Thomasville GA, 31792
Big Chicken Pawn, 40 Cobb Pkwy N, Marietta, GA 30062
Cash Advance Payday Loans, 165 Courtland St NE, Atlanta, GA 30303
Cash America Pawn, 3850 Jonesboro Rd SE, Atlanta, GA 30354
Cash Store, 807A North Main Street, La Fayette GA, 30728
Check Into Cash, 915 East 1St Street, Vidalia GA, 30474
Covington Check Cashing, 2113 Pace St, Covington, GA 30014
Discount Check Cashing, 97 Peachtree Street Southwest, Atlanta GA, 30303
El Valu Check Cashing, 2500 South Cobb Drive Southeast, Smyrna GA, 30080
First American Cash Advance, 1028 Big A Rd S, Toccoa GA, 30577
Flexcheck, 822 Concord Road Southeast, Smyrna GA, 30080
Friendly Check Cashing, 876 Cleveland Avenue, Atlanta GA, 30344
Money Tree, 2455 Salem Rd SE #C, Conyers, GA 30013
Money Tree, 4300 Buford Dr #2C, Buford, GA 30518
Money Tree, 86 Highway 53 W #120, Dawsonville, GA 30534
Money-Till-Pay-Day, 1063 Marietta Rd, Canton, GA 30114
Nationwide Payday Lenders, 925 B Peachtree St NE, Atlanta, GA 30309
USA Payday, 1750 Howell Mill Rd NW, Atlanta, GA 30318
USA Payday, 2710 Candler Rd, Decatur, GA 30034

Sat Sep 27, 2008 01:09AM by Tony | More in Personal Finance | Comments (0)

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