Georgia Payday Loan Laws

Georgia was one of the first states to institute laws that effectively banned payday loans. Since then a lot of other states have followed suit. However Georgia has since changed course and brought in new laws to bring payday loans back to the state. They did this because it turns out there was actually a pretty big need for payday loans.

A payday loan is a loan that normally has to be repaid on your next payday. That means that the period for which your loan is outstanding will normally be for a period of a couple of weeks. While that is normally how payday loans work they do tend to vary somewhat these days as payday loan companies try to get around all of the new laws that are being imposed to deal with them. In most cases you will now have thirty one days to pay back your loan since many states made laws that put restrictions on loans of less than thirty days in an attempt to put a stop to the predatory lending of payday loans.

One of those states was Georgia, in 2004 they instituted a series of new laws that effectively outlawed payday loans. While a lot of people said good riddance to the lenders the state soon found themselves with a problem. There were a lot of people who actually needed payday loans. In order to address this problem the state decided to bring in new laws in 2007 that would allow the payday loan lenders to come back to the state. These new laws have again made payday loans available to the residents of Georgia while still offering them some protection. You can check out the Payday Loan Facts Georgia to make sure that you fully understand the rules before you take a loan. This will help to make sure that you don't get stuck with a loan that is illegal.

The new laws on payday loans don't actually apply to payday loans specifically, they apply to all loans. This is so that that lenders won't simply change the terms slightly to get around the laws. There is not limit on the length of the loan or one the amount that you can borrow. However the total fees on the loan must not exceed fifteen percent of the amount borrowed. That includes both interest and any fees that are charged. In addition a processing fee of $112.50 can be applied on any payday loan up to $750.

The new laws have helped to encourage the return of payday loans to the state of Georgia. Obviously not everybody is happy about this but for the people who actually need the loans this has proven to be a good thing. A lot of other states have recently passed laws that effectively ban payday loans. Only time will tell if they have to change back and start allowing them again.