Albany writes off $542,000 in unpaid loans -, South Georgia News, Weather, Sports

Albany writes off $542,000 in unpaid loans

Albany - The city of Albany is losing more than a half-million dollars, forced to write off unpaid loans. Each year, the city loans thousands of dollars to small and minority owned businesses and disadvantaged people looking to build homes. Tuesday, city commissioners received a list of about 40 people who either went bankrupt, died, or disappeared without paying back the loan. The city will write off the $542,115.

"We do the loans you can't fund 100% in the traditional funding markets, said Richard Wooten, Community Development Director. "So, our default rates will be higher. The main thing we have to do is get counseling for them when they start to have problems paying those loans back."

Commissioners said changes must be made to the city loan policies to stop unreliable people from borrowing money. The Community Development Director said clients are given loan counseling and payment options before legal action is taken.

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