Document Type

Peach Sheet


The bill would have repealed the prohibition in Georgia on payday lending by non-bank lenders and allowed deferred presentment services providers to operate in Georgia. Deferred presentment service lenders would have been permitted to charge a fee of $15 for every $100 advanced, provided the transaction did not exceed the lesser of $750 or 25% of the consumer's monthly gross income. The loan would be due at the consumer's next payday. The bill would have contained consumer protections that would have required the lender to inform the consumer of the right to rescind the transaction the next business day and would have required the lender to provide a mandatory repayment plan if a consumer was unable to make the required payments. Consumers would also have been prohibited from entering into multiple transactions with the same lender. There would have been a mandatory five-day waiting period between transactions with the same lender. In addition, the bill would have set up statewide licensing procedures for the payday lenders. Each applicant must have satisfied objective criteria involving fiscal responsibility and moral integrity. Moreover, a license would have been refused or revoked if an applicant, employee or 10% owners were convicted of a felony involving moral turpitude or violated the provision of the bill. A license would have been subject to annual review prior to renewal.

Included in

Law Commons