Georgia Cash Advance
The Laws Of Cash Advance In Georgia
It is considered a felony in the state of Georgia to charge more than 60% interest on a loan or loans that total less than $3,000. Georgia is one of nineteen states that has banned cash advances, starting in April of 2004. One company was caught making their customers pay interest that totaled to 600% simple interest rates, and were charged with a felony upon detection. This company was called EZ Cash, and they were charging $25 for every $100 they loaned out, for a period of up to fifteen days. They were also using check-cashing fees to cover up what they were doing.
Therefore, Georgia cash advance companies are not found within the state.
Georgia cash advance loans have been severely limited by the Bill HB 515 that was passed. Many factors are now being regulated under this bill, including licensing, fees, terms, and agreement, rollovers, and default terms.
The state of Georgia requires that cash advance companies receive a license for services, offered through the Department of Banking and Finance. There are many requirements a Georgia cash advance company must have, such as their legal name, their location, a minimum net worth of at least $25,000, business records to prove this, and a list of any criminal offenses. Whoever ensures the license must also establish a surety bond, so they can transact business up to the amount of $100,000. These requirements must be met to receive a license, and the applicant must have a good character and experience, be in good financial condition, as well as take financial responsibility for their actions.
The state of Georgia also regulates the fees for the lenders. A lender can only charge 15% for the face value of the check, with a fee being no larger than $45. Terms aren't regulated in the state of Georgia, as there are not any limits given on loan terms.
Georgia legislation also regulates the agreement between the lender and the borrower. The borrower must receive a very clear written agreement in regards to their loan, such as the APR and the total amount of fees that are to be paid. In this contract, the date the funds will be taken from the borrower must be included. The borrower must also indicate on the agreement that there are no outstanding cash advances taken out in their name, either with AdvanceCash.info or another cash advance company.
Georgia also regulates the terms of default and rollover issues. The cash advance company has the right to resort to civil means in an attempt to collect on a debt should a borrower fail to pay their loan on time. In terms of rollovers, these are allowed in Georgia. However, a borrower cannot have more than 4 loans totaling over $500 at one time.
Statistics For Georgia Unemployment
The unemployment rate for the state of Georgia was 5.0%, as of the month of January 2006. This is 0.3% lower than the rate for the year 2005, in January as well. Within the past 10 years, the lowest the unemployment rate has been for Georgia is 3.5%.
As of January 2006, the state of Georgia held 230,195 unemployed residents.