Georgia

Bill: HB 515 (enacted)

License: All payday loan companies in Georgia must first obtain a license through the Department of Banking and Finance. In the application, the applicant must state the legal name of the company, location, relevant business records indicating net worth (at least $25,000), and any criminal offenses. The person(s) applying for a license in Georgia must also establish a surety bond to transact business in the amount of $100,000. In order for a commissioner to approve an applicant’s license in Georgia they must find the applicant’s experience, character, financial responsibility, financial condition, and general fitness in good condition.

Fees: The maximum fee in Georgia for payday loans is 15% of the face amount of the check. Also, under Georgia law fees cannot exceed $45.

Terms: In Georgia there are no limits set on loan terms.

Agreement: Any agreement in the state Georgia written for a payday loan must be written in clear and understandable language disclosing the total amount of fees in U.S. as well as an annual percentage rate (APR). The agreement must disclose the date on which the funds will be deposited. Also, a lender must get in writing from the borrower that he or she does not have any outstanding payday loan balances.

Default on Payment: If a borrower in the state of Georgia fails to payback a loan due to insufficient funds or closed accounts, the lender has the right to seek all civil means to collect payment.

Rollovers: Under Georgia law, a borrower cannot have more than 4 outstanding checks, or a balance in excess of $500.