“Payday financing” defined; legislative findings; forbidden task; no impairment of agencies with concurrent jurisdiction

The scope of this chapter, “payday lending” as used in this chapter encompasses 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 without limiting in any manner. This concept of “payday financing” expressly includes the exceptions and examples found in subsections

The General Assembly has determined that payday lending continues in the State of Georgia and that there are not sufficient deterrents in the State of Georgia to cause this illegal activity to cease despite the fact that the Attorney General of the State of Georgia has opined in Official Opinion 2002-3 entered on June 27, 2002, that payday lending is in violation of Georgia law and despite the fact that the Industrial Loan Commissioner has issued cease and desist orders against various payday lenders in the State of Georgia.

The typical Assembly has determined that various payday loan providers have actually developed specific schemes and practices to be able to make an effort to disguise these deals or even cause these deals appearing to be “loans” made by a nationwide or state bank chartered an additional state for which this particular financing is unregulated, despite the fact that a lot of the profits in this financing technique are compensated to your payday lender. The typical Assembly has further determined that payday financing, regardless of the illegality of these task, is growing in their state of Georgia and is having an effect that is adverse armed forces workers, older people, the economically disadvantaged, as well as other residents for the State of Georgia. The typical Assembly has further determined that significant unlawful and penalties that are civil and above those presently current under state legislation are necessary so that you can prohibit this task when you look at the State of Georgia and also to cause the cessation of the task forever. The typical Assembly further declares that these kinds of loans are unlawful and therefore are in breach of Code Section 7-4-2. The typical Assembly declares that the utilization of agency or partnership agreements between in-state entities and out-of-state banking institutions, whereby the in-state representative holds a prevalent financial desire for the profits created by payday advances designed to Georgia residents, is really a scheme or contrivance through which the representative seeks to circumvent Chapter 3 of Title 7, the “Georgia Industrial Loan Act,” therefore the usury statutes with this state.

Payday financing involves fairly little loans and will not encompass loans that include interstate commerce. Certain lenders that are payday tried to make use of forum selection clauses included in pay day loan documents to prevent the courts for the State of Georgia, and also the General Assembly has determined that such techniques are unconscionable and really should be forbidden.

Without restricting in virtually any manner the range with this chapter, the overall Assembly declares it is the overall intent with this chapter to reiterate that within the State of Georgia the training of doing tasks commonly called payday lending, deferred presentment solutions, or advance money solutions as well as other comparable activities are unlawful and also to bolster the charges for all those participating in such tasks.

This chapter by no means impairs or limits the authority provided towards the commissioner of banking and finance, the Industrial Loan Commissioner, or just about any other regulatory authority with concurrent jurisdiction throughout the issues stated in this chapter.

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