| p>Before taking out a payday loan, it is important | | | | payday loans illegal, even though the state was |
| to understand exactly what the process entails | | | | largely unsuccessful in dismantling the industry until |
| and to know all regulations regarding them in your | | | | the Georgia General Assembly passed the Payday |
| state. Not every state, for example, is a payday | | | | Lending Act of 2004. This new set of provisions |
| loan state at all, meaning paycheck advances are | | | | under the GILA dramatically increased fines and |
| either prohibited altogether or are simply | | | | criminal penalties for Georgia cash advance lenders |
| unfeasible because of state law. Payday lenders | | | | making small loans at illegally high interest rates. |
| have become notorious for charging astronomical | | | | Under the law, violators may face felony and |
| interest rates and for aggressive collection | | | | racketeering charges, fines of up to $25,000 per |
| practices. These pressures have driven many | | | | violation, and a 25-year prison sentence. |
| borrowers to debt, which in turn has bred heated | | | | Alternatives to Payday Loans in Georgia |
| lobbying against the industry and influenced | | | | Because of the legislation outlawing them, payday |
| legislation prohibiting high-cost payday lending in its | | | | loans in Georgia are not a feasible way to obtain |
| most common form in many states. In those | | | | quick cash at a time of need. If you are in need |
| states, if it is not explicitly deemed illegal by law, it | | | | of a cash advance in Georgia, there are several |
| is made practically impossible by means of strict | | | | alternatives available to avoid the cycle of |
| usury laws that cap the cost of credit at a certain | | | | predatory lending and debt that made the service |
| nominal annual percentage rate (APR) set down | | | | illegal in the state in the first place. When you are |
| by the state government. | | | | shopping for credit, look for low APRs and low |
| Laws Prohibiting Payday Loans in Georgia | | | | finance charges. These are not typically |
| The majority of states still allows and regulates | | | | advantages you will get with many payday |
| payday lending, but over a quarter of states do | | | | lenders. Of course, these are also advantages you |
| not. Although payday lending has become a | | | | will not have with many lenders. If you find |
| multibillion-dollar industry in the United States, it is | | | | yourself unable to make a payment, it is |
| illegal to make or take out a payday loan in | | | | important to contact your creditor and ask about |
| Georgia, for instance. Georgia has a long history | | | | possibly extending your due date. You may also |
| of legislation banning high-cost payday cash | | | | consider asking your employer for a payday |
| advances, beginning with the Georgia Industrial | | | | advance, which is not unreasonable in many |
| Loan Act ("GILA") of 1955, which requires state | | | | situations. Although it will lower your next |
| registration and licensing and imposed very strict | | | | paycheck, it is better than paying the excessive |
| usury limits on small short-term loans. Under the | | | | fees often affixed to payday loans. You may also |
| statute, unlicensed lenders are limited to charging | | | | consider working a side job or overtime, or seek |
| an eight-percent interest rate on consumer loans | | | | out local emergency hardship programs through |
| of $3,000 or less. This essentially made Georgia | | | | your local Department of Human Resources. |
