Payday Lending in North Carolina

In 2001, the payday lending laws were allowed to expire.  Payday lenders tried to circumvent the law and in 2006, the NC Attorney General was able to work out a deal with payday lenders who thereafter ceased doing business in North Carolina.  You can read about it here: Unfortunately, North Carolina has not seen the last of payday lenders.  Banks are now getting into the act and coming up with their own creative ways to evade the prohibition on … Continued

Payday Lending in Georgia

Here is a link from the Georgia Department of Banking and Finance regarding payday loans: Payday lending is largely prohibited in Georgia UNLESS the loan is made pursuant to the Georgia Industrial Loan Act (GILA) or is one of the other enumerated exceptions.  O.C.G.A. § 16-17-2.  Collection of a payday loan made in violation of the law is barred.  O.C.G.A. § 16-17-3.To be legitimate under GILA, the lender must be: (a) licensed; and (b) prohibited from charging more than 10% interest … Continued

Payday Lending in Pennsylvania

Pennsylvania has several laws which come into play, the Consumer Discount Company Act (CDCA), codified at 7.P.S §§ 6201—6219 and the Loan Interest Protection Law (LIPL), codified at 41 P.S. §§ 101-605. While the laws actually have to be read in details as they are complex, in a nutshell, the CDCA requires companies lending less than $25,000 to be licensed.  7 P.S. § 6203.A.  Licensed companies may charge interest at a rate in excess of the statutory maximum of 6%. … Continued