Are you currently struggling to make ends meet in today’s downturned economy? If you are a Georgia resident and you are in need of cash fast, you may have begun to look into a payday loan. A Georgia payday loan is an alternative for those who need cash now and can’t afford to wait till their next payday. Last minute emergencies, such as a leaky roof or a forgotten past-due bill may have caught you off guard. You may not have the money you need till your next payday but your cash needs can’t wait till then. A Georgia payday loan can give you an advance on the money you need now. Before you apply for your Georgia payday loan you will want to look over the payday loan rules applicable to the state listed below. Keep in mind that Georgia’s heavily regulated lending laws make it difficult to obtain a traditional payday loan in the state, as most loans are not valid in the state.
1. Georgia Licensing Requirements
The state of Georgia has implemented strict licensing requirements for lenders of Georgia payday loans. A lender operating out of the state must be licensed to ensure they meet the state’s lending standards. Unlike some other states, however, Georgia residents can borrow from outside of Georgia. In those cases, residents borrow at their own risk and not under the protection of Georgia law.
2. Regulated Loan Limits
The state of Georgia forbids most types of payday lending. In order to lend in the state of Georgia, lenders must adhere to lending practices approved by the state. Loans in the amount of $3000 or less cannot incur a higher interest rate than 16%. In most cases, obtaining a Georgia payday loan in an amount higher than $3000 can be difficult.
3. Fair Lending
Georgia payday loan lenders must disclose all pertinent loan information to payday loan borrowers. This includes a complete fee schedule that applies to the loan, including processing fees, late fees, and interest charges. In addition, lenders are required to verify minimum income requirements of all borrowers. A Georgia payday loan requires a minimum income of $1,500 per month. Lenders will typically require recent paystubs to verify this information.
4. Multiple Loan Requests
As mentioned above, Georgia residents are not limited to in state lenders for their payday loan needs. You may borrow from an out of state lender, but you will not be covered by the same laws and regulations that are applicable to instate lenders. Borrowers are also able to apply for multiple loans at a time, often able to apply for more than one loan from the same borrower.
5. Payday Loan Contracts
Georgia payday loan borrowers will be required to enter into a binding contract with their payday loan lender. Borrowers must be at least 18 years of age or older and must provide their lender with proof of income and valid bank account information. All written agreements must disclose all applicable loan fees by the lender.
6. Civil and Criminal Charges
Before you apply for a Georgia payday loan, you should be sure that you can afford to borrow. Only borrow what you need and account for any associated loan fees in your final total. Lenders are required to give you 30 days to repay your payday loan. A failure to repay on time could result in high penalties. Georgia also permits lenders to file civil charges against borrowers who fail to pay. However, if your lender has violated the Georgia lending practices as mandated by law, Georgia allows for both civil and criminal remedies for borrowers. Lenders could face up to $10,000 in fines for violating Georgia lending practices.