Cash Pay Advance

The study concluded that “compared with households in all other states, households in Georgia have bounced more checks, complained more to the Federal Trade Commission about lenders and debt collectors, and filed for Chapter 7 bankruptcy protection at a higher rate. The law expired in 2001, and many small payday lenders closed, but the largest lending chains linked up with out-of-state banks to keep offering the loans. King criticized the report because it drew on data from the Federal Reserve’s check cashing centers in Atlanta and Charlotte, which processes tranactions in states other than Georgia and North Carolina, including those that do allow payday loans. Last month, a report by the University of North Carolina Center for Community Capital prepared for the North Carolina Commissioner of Banks concluded “the absence of storefront payday lending has had no significant impact on the availability of credit for households in North Carolina. That study was criticized by Community Financial Services Association of America, a trade group that represents 60 percent of the industry, because it included survey response data from people who had never sought a payday loan. Find Out More

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