Adjust Text Size

Georgia Prosecutes First Violators of Payday Loan Ban

Written by Nickel - 3 Comments

The Georgia Supreme Court has upheld the conviction of two lenders charged with violating the state’s ban on payday loans. The two lenders, who were convicted of more than 40 violations, argued that the law violates the federal equal protection clause by unfairly targeting businesses located in Georgia. According to prosecutors, the two men subtly changed their business practices after the law was enacted. One puported to run a check-cashing service, and began referring the lending fee a “CheckGuard.” The other attempted to disguise the loans by including an option to buy a parcel of real estate that he owned — not surprisingly, no customers ever exercised that option. Both mean were given 15 years of probation, making them first Georgians to be successfully prosecuted under the law.

According to District Attorney Joe Mulholland:

“I’m not going to go out and celebrate, because I’m sure I’ll be doing this again next week. It’s kind of like the war on drugs, it’s never going away.”

[Source: Access North Georgia]

Published on May 16th, 2007 - 3 Comments
Filed under: Debt Reduction

About the author: is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Related articles...

» Georgia Upholds Ban on Payday Loans
» Payday Loans are Still a Bad Idea
» This is Not a Payday Loan
» links for 2007-03-06
» From the Archives – (March 23rd – March 30th)
» Carnivals – Week of 04/02/07
» The Best of March 2007
» How to Get a Loan from Your Friends or Family

Was this article useful? Please sign up to receive our content via e-mail:

You will receive only the daily updates, and can unsubscribe at anytime.

3 Responses to “Georgia Prosecutes First Violators of Payday Loan Ban”

  1. 1
    Crediteria.com Says:

    It’s good to see that Georgia is taking the lead to protect consumers against loan sharks (which is basically what payday loan companies are).

    The next step in protecting consumers is education.

    Hmmm, maybe run a “payday loan customer turned financially intelligent” contest of some kind…

  2. 2
    Ben Says:

    Woo hoo! Chalk one up for the good guys :)

  3. 3
    Daniel Says:

    I don’t see how this can be a good thing. This sets the precedent that the government can tell you how and how not to manage your finances. What’s next? A limit on the number of credit cards we can have? Business permits denied on the grounds that the business plan sounds too risky? How is it that government intrusion is welcomed in the South? We the people need to back the goverment out of our lives, not welcome it further into them.

Leave a Reply

Disclaimer...
Because rates and offers from advertisers shown on this website change frequently, please visit referenced sites for current information. This website may be compensated by companies mentioned through advertising, affiliate programs or otherwise.

FiveCentNickel User Survey