Support SB 462 to transfer oversight of small-dollar loans to the Department of Banking and Finance

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.

Senator Kennedy’s bill passed both chambers. 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. We supported SB 462, which strengthens consumer protections in Georgia by employing more robust licensing and reporting requirements for installment lenders. The bill heads to the Governor’s desk 


Why does this change in oversight matter?

Today, Georgia is the only state that regulates small-dollar lending under the Office of the Insurance Commissioner. Transferring governance of these loans from the Office of the Insurance Commissioner 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.

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