Predatory small-dollar lenders prey on financially insecure consumers by providing quick cash loans with punishingly high interest rates and fees, making them all but impossible to pay on time. While Georgia has made progress in preventing predatory lending by prohibiting payday loans, state law still allows other forms of high-interest, small-dollar lending. In Georgia, predatory small-dollar loans can include car title loans that carry up to 300% interest and other installment loans of up to $3,000 that can have interest rates and fees totaling more than 60% APR (“annual percentage rate”). These loans trap individuals into a cycle of debt that can be difficult to escape.
The Georgia Financial Protection Coalition (GFPC), led by Georgia Watch, works to protect Georgians against predatory lending. The coalition advocates for safe financial products and industry practices that will create a fairer marketplace in Georgia. Learn more here.
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