Payday loans in Georgia: illegal — what to do instead

What the law says

• Payday lending is illegal in Georgia (Georgia DBF ↗).
• Any loan transaction in violation of the prohibition on payday lending is automatically void (Georgia Attorney General ↗).
• Persons making small installment loans of $3,000 or less must be licensed by the Department and follow the Georgia Installment Loan Act (DBF ↗).

Online offers

The Department has received complaints about entities offering Georgians loans under $3,000 without a license (DBF guidance ↗). Before borrowing online, ask for the lender’s Georgia license and check it with the Department.

How to report a lender

Contact the Georgia Department of Banking and Finance, 2990 Brandywine Road, Suite 200, Atlanta, GA 30341, phone 770-986-1633 (Georgia AG ↗). The Attorney General also suggests reporting to your local district attorney or solicitor.

Options in Georgia

• A payday alternative loan from a federal credit union (APR capped at 28%).
• A cash advance app — compare costs with our fee calculator.
• Asking the company you owe for more time or a payment plan.
• If you already owe a payday loan: extended payment plans and getting out of payday debt.

Questions

Are online payday loans legal in Georgia?

No. Payday lending is illegal in Georgia; small loans of $3,000 or less require a Georgia installment lender license.

Do I have to repay an illegal payday loan?

Georgia’s Attorney General says loans made in violation of the payday lending prohibition are void. Get legal advice for your situation.

What small loans are legal in Georgia?

Installment loans from lenders licensed by the Department of Banking and Finance, credit union loans and bank loans.