Cash Advances and Payday Loans in GA - New Law Whips Industry into Shape

Cash advances and payday loans in GA are taking a beating lately what with the latest legislature passed that aim to regulate the borrowers and lenders involved in pay day cash advance loans in Georgia.

The legislature is a bit broad in defining as to which institutions are in the business of payday cash advance loans but goes on to say that it would mostly be an institution that grants loans less than $3000. One big blow to lenders is the part that says "illegal payday loans are declared void, and lenders are barred from collecting the indebtedness". Since it is only now that most states are REALLY looking into the payday loans industry, many lenders are indeed doing so unscrupulously and risk not being able to get a cent out of the money owed them.

To further curb the enthusiasm of lenders of cash advances, tax equal to 50% of all proceeds received from illegal payday loans will be imposed! This is not all. Probably the most damaging to lenders of payday cash advance loans is that a civil action suit in behalf of groups of people or the State can be brought forth against illegal payday loans.

When all is said and done and the lender is found guilty, hefty fines and some serious jail time may be in order and who wants THAT?

Is there anything else we forgot? Oh yeah, what about the borrowers? Who's curtailing their almost obscene desire to get payday load after payday loan?