PayDay Loans to Return to Georgia?

Three years ago Georgia state lawmakers decided that payday loans were more of a nuisance than a help to their citizens. These short-term loans designed to provide temporary relief for unexpected financial emergencies, ultimately drained the finances of those utilizing them. The loans, as helpful as they may have seemed, have extremely high interest rates---as high as 59% in some cases.

Three years ago Georgia state lawmakers decided that payday loans were more of a nuisance than a help to their citizens. These short-term loans designed to provide temporary relief for unexpected financial emergencies, ultimately drained the finances of those utilizing them. The loans, as helpful as they may have seemed, have extremely high interest rates---as high as 59% in some cases.

A NEW PAYDAY LOAN LAW

The laws which targeted payday loan companies acting as "loan sharks", have recently been challenged by payday lending lobbyists who claim that their businesses have been hurt by the ban. On Thursday, February 22^nd 2007, a House committee approved a measure which would designate a cap on fees of $15 per $100 charged for payday loans. This measure would also prevent the loans from accruing interest, but would allow a one-time processing fee of up to $112.50 to be charged on loans up to $750.00. The new initiative would also prohibit customers from rolling loans from one month to the next.