On October 31, 2016, the Supreme Court of Georgia issued a opinion that is lengthy against payday loan providers in two situations consolidated on appeal. The 2 instances (Western Sky Financial, LLC v. State of Georgia, No. S16A1011 and State of Georgia v. Western Sky Financial, LLC, No. S16X1012) included state legislation of tribal affiliated, out-of-state lenders that are payday supplied loans to Georgia residents telephonically and on the internet. On appeal, the Supreme Court of Georgia considered a true number of problems including perhaps the state could sue loan providers involved with interstate business underneath the state’s Payday Lending Act (OCGA §§ 16-17-1 through 16-17-10); whether agreements created in another state had been susceptible to that legislation; and whether tribal sovereignty precluded the law’s enforcement.
The defendants’ very first argument against Georgia’s attempted legislation had been that the Payday Lending Act excluded loans made through interstate business. Western Sky Fin. LLC v top payday loans in New Hampshire. State of Georgia, —S.E.2d —, 2016 WL 6407256, at *2 (Ga. Oct. 31, 2016). Even though the Court consented that a subpart regarding the statute expressly claimed that “Payday financing involves loans that are relatively small doesn’t encompass loans that involve interstate business” (id. (quoting OCGA В§ d that is 16-17-1(), it figured this subpart ended up being simply a finding of reality and never a limitation regarding the reach of this legislation. Id. It determined that if this subpart ended up being a limitation, as compared to Payday Lending Act would “be virtually meaningless” because really all loans include interstate business. Pokračování textu Supreme Court of Georgia Rules Against Payday Lenders