Payday Loans In Georgia
A payday loan is a small loan on the short term that is intended to cover the borrower’s expenses up to the next payday. These loans are also referred to as cash advances and the legislation regarding payday loans varies widely between the different countries in the world and even between the states in the US. Here one can read more about the situation of the payday loans in Georgia.
Georgia is one of the nineteen states that introduced the legislation on the banning of payday loans. In this state, charging more than 60% interest to a loan that is less than $1000 is considered a felony. The law was enforced after a loaning company was caught lending money and asking $25 for every $100 borrowed for a period of 15 days. Lending companies used various types of fees to try and hide what they were actually doing. However, this is no longer possible. For a while Georgia did not have any payday loan companies and this makes the difference between the different states in the US striking while in some other states one can get a payday loan online, in Georgia this is quite difficult to achieve. Or it used to be.
In 2007, due to the increasing pressure from the payday loan lenders and lobbyists, the Congress considered loosing the ban. The more recent law made it possible for lenders to offer these services and for individuals to buy them. however, there are strict rules to be followed regarding the interest rates and how high they could be. In the end, Georgian residents are able to obtain payday loans but this is more difficult than in other parts of America and it is certainly less profitable for the payday loan lenders as they must abide to very strict rules if not willing to be considered felons.Back
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