Payday-lending law upheld
May 14, 2007 at 3:58 pm by Scott Freeman in NewsWord just in from Georgia Watch that the Georgia Supreme Court has upheld the law signed by Gov. Sonny Perdue in 2004 that banned predatory payday lending.
The appeal came from a case that was prosecuted in Bainbridge where two men were prosecuted under the new law and argued the law is unconstitutional because it treats their businesses differently from payday lenders that are associated with out-of-state banks. The court disagreed, saying payday lenders are significantly different from banks and deserve to be treated differently.
“I think it’s a good day, but I’m not going to go out and celebrate because I’m sure they’ll be back next year,†South Georgia Circuit District Attorney Joe Mulholland, who was the first district attorney to successfully prosecute lenders under the 2004 ban, told Georgia Watch.
Mulholland was referring to the failed push during the last legislative session to repeal the law against predatory payday lending.
Allison Wall, executive director of Georgia Watch, was more optimistic. “This is yet another sign that Georgia is serious about keeping loan sharks out of our state,†she said.
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