Pay day loans still legal - WALB.com, Albany News, Weather, Sports

Pay day loans still legal

June 29, 2005

Albany- If you need money fast and turn to a pay day loan store, you could be charged outrageously high interest rates.

It's legal, for now.

A federal appeals court recently upheld Georgia's pay day loan law designed to protect people from exorbitantly high interest rates. But the ruling did not close a loophole.

For example, First American Cash Advance can still operate because it doesn't get most of the money from the high interest loans. The company uses a South Dakota bank that is the primary beneficiary.

"South Dakota has always got to receive half the profits to be legal under this court decision," said Ken Hodges, Dougherty County District Attorney.

Hodges plans to push state lawmakers to close the loophole next year so these businesses can be forced to close in Georgia.

feedback at news@walb.com