Payday Lending

Payday lending is illegal in Georgia. O.C.G.A. § 16-17-2.  A typical payday loan involves the taking of a check and holding it for a few days or weeks (until “payday”), then depositing it or requiring repayment of the loan of $100 to $500 plus a fee or interest.

Small consumer installment loans of $3,000 or less are regulated by the Department pursuant to the Georgia Installment Loan Act (“Act”).  The Act provides that persons or companies making small dollar consumer installment loans of $3,000 or less shall be required to obtain a license from the Department and comply with the provisions of the Act unless they are exempt from such licensure.  For more information on transactions that may be covered under the Act, please visit the Department’s Installment Loan page

If you are the victim of a payday lender, contact your county solicitor or, if your county does not have a solicitor, the district attorney.  In addition, please notify the Department at dbfgila@dbf.state.ga.us.  

Consumers can submit an online complaint about a payday loan to the Consumer Financial Protection Bureau (CFPB). (links offsite) The CFPB is a federal agency established to protect consumers by carrying out federal consumer financial laws.

If you believe that a lender has violated the Truth in Lending Act, file a complaint with the Federal Trade Commission. (links offsite

For a more comprehensive discussion of the payday lending prohibition, please review the relevant portion of the Consumer Ed website provided by the Georgia Department of Law’s Consumer Protection Unit at http://consumer.georgia.gov/consumer-topics/payday-loans. (links offsite)