What a payday loan costs — before Georgia’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Georgia
- Rate cap
- Payday lending is prohibited outright: the Payday Lending Act (O.C.G.A. § 16-17-1) makes payday-style lending a criminal violation, and the Industrial Loan Act limits small-loan rates well below payday levels.
- Key law
- Georgia Payday Lending Act, 2004 (O.C.G.A. § 16-17-1); Industrial Loan Act, 1955.
- Enforcement
- In Western Sky Financial, LLC v. State of Georgia (Ga. 2016), the Supreme Court of Georgia rejected tribal sovereignty as a shield for out-of-state tribally affiliated internet payday lenders.
The Supreme Court of Georgia ruled against Western Sky Financial in 2016, holding that tribal affiliation could not exempt online payday lenders from Georgia’s ban.
What it means for a Georgia borrower
Payday and high-cost tribal loans made to Georgia residents are illegal and unenforceable, and making them can be a felony. Many tribal lenders have stopped lending to Georgia residents.
If you already have a payday loan in Georgia
A loan that violates Georgia’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Georgia Attorney General’s Consumer Protection Division and the Georgia Department of Banking and Finance.
- Treat the loan as likely void — do not assume interest above the legal limit is collectable, and have the agreement reviewed.
Cheaper first — try these before a payday loan in Georgia
Payday Loans and tribal lenders in Georgia
Many online lenders that market payday loans to Georgia residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Georgia residents and how state law applies to them, see the Georgia tribal-lending page.
Tribal loans in Georgia →Frequently asked questions
Does an online or tribal lender have to follow Georgia's payday loan rules?
Georgia applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to Georgia residents and how the state treats them, see the Georgia tribal-loan page.
What can I do about a payday loan I already have in Georgia?
Because Georgia effectively bans high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible — so find out before you pay a collector anything more. The steps on this page start with the lender's license. This is general information, not legal advice.