No Payday Loans in Georgia?

Payday loans are popular in the United States (U.S.). This loan scheme exists in several U.S. states including, but not limited to, New York, Virginia and North Dakota. Payday loans are known to bring convenience to people who are in urgent need of cash. Unfortunately, payday loans are not offered in Georgia, and we are here to educate you about the illegality of availing payday loans in Georgia.

To give you a brief background about payday loans, these are a form of a short-term borrowing option wherein you can loan any amount ranging from US$100 to US$500 and repay it on the next payday. There are lenders that allow applicants to borrow more than US$500, as long as there is a good professional relationship between the lender and the borrower. You are eligible to avail of a payday loan if you are a legal citizen of the U.S., are of legal age, have a regular income, and have a bank account.

Aside from the amount that you loaned, you are required to pay a financial fee. Payday lenders charge high financial fees because of the high risk that they also face. They usually charge US$15 to US$30 for every borrowed US$100.

This is what makes payday loans in Georgia illegal. There are usury laws existing in this state, indicating that unlicensed lenders cannot charge more than 8% on a loan that is less than or equal to US$3,000. Payday loans are legal in other states because they do not have a usury limit.

Even if a payday lender is licensed, the state of Georgia still implements usury limits on small loans in accordance with the Industrial Loan Act of 1955.

What makes it even more impossible for payday lenders to offer payday loans in Georgia is due to the provisions passed by the Georgia General Assembly in 2004. The provisions state that fines and criminal penalties for people charging illegal interest rates on small loans will be increased. These provisions are known as the Payday Lending Act of 2004.

Due to such circumstances that make payday loans in Georgia illegal, the state government has offered ways to avoid needing such kind of loan. Its suggestions include asking creditors to extend the deadline in paying your bills and limiting debts by using only one credit card.

There are some Georgians who do not have anything negative to say about the illegality of payday loans in Georgia. However, there are some Georgians who believe that not allowing lenders to offer payday loans in Georgia might negatively impact the lending industry.

Tags: No Fax Payday Loan, Easy Loan, Payday Loan, Finance, Money