What are your loan options in Georgia?
Payday loans are a useful tool and can be paid out within a matter of hours to all those who meet the proper requirements. Banks do not provide these type of short term cash based loans. People who can’t always get a loan from a bank because they are too young or have bad credit can sometimes receive a payday loan.
The downside of a payday loan, however, is, that many states did not put any control on them. Therefore, anyone can offer them holding a simple license, and they can put in place their own conditions, which often go hand in hand with sky-high interest rates and other fees which the borrower needs to pay.
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What are the payday loan laws and regulations in Georgia?
According to the statutes 16-17-1 et seq., 7-3-14 et seq. and 80 3-1.02(7 laws Georgia has made Payday loan illegal in the state. This is due to the continuous state of debt, the extreme, uncontrollable APR (interest rates and further charges) which have made people virtually unable to pay these sorts of loans back in time. That’s also why anyone who is caught lending money for extra high-interest rates to any other person within the state is considered having committed a felony, He or she can be charged, pursued go to court and even to prison.
If someone wants to do short-term money lending activity within Georgia, they need to abide by the law 7-3-14 et seq. which puts some severe terms and conditions on money lending such as the following.
- A loan is considered a small loan if its total sum is under USD 3000
- A small loan has to be paid back within 36 months
- The minimum borrowing term should be 15 days
- Interest rate is 10% yearly
How much can you be charged by a payday lender in Georgia?
Small loans are charged with 8% for USD 600. Every sum that’s borrowed and is above USD 600 will be charged 8% for the first USD 600 then an extra 4% for all the sum that falls above this sum ( same goes for installment loans too). Additional fees for small loans such as installment laws have a general fee that equals USD 10, and additional maintenance fee of USD 3 may apply for every month payback of a predefined quantity is due.
Your rights as a borrower in GA
A legal contract needs to be signed by both parties upon agreeing to all conditions. If anything is not outlined, or if the contract contains any other fees which do not fall under the law, the borrower does have the right not to sign the contract. The borrower has the right to contact the State Attorney of Georgia and file an official complaint against the lender. Other options for small credits are credit card cash advances and installment loans. Be aware that out of state lenders are also illegal to operate with payday loans within the state of Georgia and it is considered a felony all the same.