Overview
Predatory Lending
Legislation that
would have allowed payday lending back into the state of Georgia was
narrowly defeated during the 2007 legislative session. Payday lending was made illegal in Georgia in 2004,
however, there continues to be intense lobbying by the payday lenders to
pass legislation that will allow this predatory lending practice back
into the state of Georgia.
Car title lending
Car title lending was introduced in the 1990’s as an alternative to
payday lending. Title loans are marketed as small emergency loans, with
the customer handing over his or her car title and an extra set of keys
as collateral. A car title loan can carry a triple-digit annual
interest rate, usually requires payment within one month and is for
much less than the value of the car. If
you are unable to pay off the loan, the lender can repossess your car,
which makes these loans especially dangerous.
