I Smell A Controversy

I expect controversy over this proposal, but I don’t think there really should be any. There is a market and demand.

Republican lawmakers filed a measure Wednesday that would repeal the landmark state law banning “payday” lending and replace it with a new system that regulates short-term lenders.

The state’s crackdown on payday lending, which threatens lenders with stiff penalties for marketing the high-interest loans, has left a void among needy Georgians with poor credit, said state Rep. Bobby Franklin.


  1. jsm says:

    I disagree with Rep. Franklin. Needy Georgians with poor credit have places to make loans. My girlfriend works for a finance company that makes loans as small as $100, and they specialize in helping people rebuild credit. There are several of these in the Gainesville area as well as most towns around the state. Their industry has not been affected by the payday lending legislation, because their loans are not short term like the payday lenders’ loans and their terms are not as entrapping. Their operations are government regulated and interest rates are set at 18%.

    However, I do believe in a free market. Aside from protecting those with mental handicaps, government should only make sure that full disclosure is being made to every customer regarding the loan and other add-ons (AD&D insurance, free towing, etc.) they are signing for.

  2. Believe it or not, I think Governor Perdue’s governing philosophy is right on the money, no pun intended, in this case.

    He told Georgians that he was against beer sales on Sunday because it would teach them a valuable lesson in time management (buy your beer in advance).

    Not having 300% payday loans will also teach Georgians a valuable lesson in money management. Three cheers for Sonny.

  3. Dawgfan says:

    I don’t know what will become of this but, I would ask everyone for and against to make sure that whatever passes the lenders can’t use checks to secure these loans.

    My understanding of how these work is that I write the lender a check for $100 and a week or two later I come back and give him $125. He either gives me back the check or we come to another agreement on the original loan.

    The point is that by using a check to secure the loan then the lender can use the local police force as there personal collection agency. I think we can all agree that the police should not be in the collection business for pawn shops.

  4. DougieFresh says:


    I do not think that is correct. I am no lawyer, but from my understanding in OCGA 16-9-20, check fraud can only be charged for Present Consideration.

    If it’s a post dated check, isn’t it considered an extension of credit, and not present consideration?

    Maybe a lawyer can answer.

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