Georgia Watch supports the passage of legislation that transfers governance of small-dollar loans to the Department of Banking and Finance.
Current legislation: On February 28, Senator John Kennedy (R – Macon) introduced Senate Bill 462. This bill continues previous efforts to shift regulatory authority of industrial loans (also known as small-dollar loans) from the Industrial Loan Commissioner to the Department of Banking and Finance. On March 9 before the session suspended due to COVID-19, SB 462 passed the Senate.
On June 17, the bill unanimously passed in the House Banks and Banking Committee. On June 19, the bill passed in the House and headed to the Senate where it was passed unanimously on June 24. It is now heading to the Governor’s desk for signature. We support SB 462, which strengthens consumer protections in Georgia by employing more robust licensing and reporting requirements for installment lenders.
Why does this change in oversight matter?
Today, Georgia is the only state that regulates small-dollar lending under the Department of Insurance. Transferring governance of these loans from the Department of Insurance to the Department of Banking and Finance is a commonsense, consumer-friendly move. Under the supervision of the Department of Banking and Finance, Georgia could employ more robust licensing and reporting requirements for installment lenders.
We support legislation that presents an opportunity to strengthen consumer protections in Georgia and ease the financial burdens of our most vulnerable by reforming our small-dollar lending laws.
Read more about small-dollar lending and by clicking here.