New Georgia Law Seeks To Shut Down Payday Lenders
Georgia's governor, Sonny Perdue, has signed into law legislation that shuts down payday lenders and turns the practice into a felony. The law had been supported by the Georgia Credit Union Association.
Under the new law, payday lending is a felony if lenders offer short-term loans above the state's cap of 60% per year. The governor had cited the effects of payday lenders upon unsuspecting Georgians, especially military personnel.
The law also allows prosecutors to charge violators with racketeering, which carries a penalty up to 20 years in prison. Victims also can file class action suits, several of which are expected to be filed.