Georgia Payday Loan Companies Closing

Historical archive, first published 2005 — payday-lending laws and rates have changed since. Preserved for the record.

Bainbridge, Georgia — Just recently five payday loan companies have voluntarily shut down in Bainbridge. Two more payday loan companies, "Money Now" and "Fast Cash Title Pawn" are on trial. If found guilty, this will add two more companies to the closing list.

District Attorney, Joe Mulholland, is prosecuting the two companies for violating the payday lending act with their interest "rollover."

The payday lending act, established in July 2004, made it illegal to charge more than 16% interest for any faxless payday loans under the amount of $3,000.

Mulholland said "Money Now" and "Fast Cash Title Pawn" tried getting around that law by "giving a rebate, or an option, or they're giving a gift certificate, when, in fact, there's no gift to be got."

A decision by the judge is expected to make by March.