Common Violations Cited in Installment Lender Examination Reports

O.C.G.A. Section 7-3-43 states, in part, that the Department may suspend or revoke a license if it finds that any ground exists which would require or warrant the denial of an application for the issuance or renewal of a license or for a violation of any provision of the Georgia Installment Loan Act (GILA) or any rule or regulation issued under the GILA in the course of its business of making installment loan.

The following table is a listing of the most common violations cited in installment lender exam reports. The summaries provided are not comprehensive of the GILA or related Department Rules and Regulations.  Georgia Laws and Department Rules, Regulations, and Rulings governing financial institutions and licensees under the regulatory authority of the Department can be found here:  https://dbf.georgia.gov/laws-regulations-rulings-and-publications

Licensees are required to obtain and maintain a G.C.I.C.-handled criminal background check for all covered employees.  The background check must be obtained and reviewed prior to date of hire. 

Licensees are required to search NMLS Consumer Access and retain the printout or screenshot with date of the eligibility check in the employee file, for all employees, with such review of the Department's public records taking place prior to the date of hire.

Licensees shall deliver to the borrower a copy of the loan contract with the licensee’s name, unique identifier (NMLS #), business address, the actual amount of cash advanced to or on behalf of the borrower, the amount of each class of insurance carried and the premiums paid thereon, and the amount of interest and fees.

The Rule requires that licensees keep a complete and accurate journal of installment loans.  The principal place of business must have a current journal updated no less frequently than every seven (7) days. 

All solicitations or advertisements including business cards must include licensee’s name and unique identifier.

The unique identifier is the licensed company’s NMLS ID number, not the branch or an individual’s NMLS identification number.

A licensee shall send written notice to the Department within ten days of the following:

•  Any knowledge or discovery that any of the licensee's owners, executive officers, directors, trustees, agents, or covered employees has been convicted of a felony;

•  Any knowledge or discovery that any of the licensee's owners, executive officers, directors, trustees, agents, or covered employees has committed fraud, engaged in dishonest activities, or made any misrepresentation;

•  The discharge of a covered employee for actual or suspected misrepresentations, dishonest acts, or fraudulent acts;

•  Any knowledge or discovery of an administrative, civil, or criminal action initiated by any governmental entity against the licensee.

Generally, the rule requires the licensee and its control persons to keep current at all times its information in NMLS.  Amendments or changes to NMLS information must be made within ten business days of the date of the event necessitating the change.

Department Rule 80-14-5-.04 sets forth certain requirements for licensees when offering unsolicited live checks, including information that must be provided on or with the live check, restrictions on the dissemination of unsolicited live checks, and restrictions on the imposition of convenience fees for electronic payments.

Each licensee shall conspicuously post a copy of its Georgia Installment Lender license in each location where the licensee engages in installment lending.

Licensees can print a copy of the license certificate by visiting the Department’s website.

Each loan file shall contain the following:

• Copy of the loan application
• Copy of credit report if pulled or ordered
• Copy of the signed loan agreement
• Copy of all notes, bills of sale, or other indebtedness or security