The Georgia Supreme Court has upheld the conviction of two payday lenders in South Georgia.
The Court’s unanimous ruling reinforces a three-year-old state law that prohibits short-term, high-interest payday loans.
Two Bainbridge-area lenders, Nathaniel Glenn and John Dunlap, challenged the law after they were convicted of 95 violations last year. They called the law unconstitutionally vague. They also argued that it limits Georgia lenders, but not out-of-state banks, which are governed by federal law.
The Court ruled that Glenn and Dunlap’s claims held no merits. Georgia lenders, it said, must follow state law.
"Appellants, as in-state lenders, are subject to Georgia statutes regulating or restricting high interest rates on loans, whereas the out-of-state banks are not," Presiding Justice Carol Hunstein wrote for the Court.
Earlier this year, the Georgia House of Representatives rejected a bill that would have legalized payday lending.
The Court’s unanimous ruling reinforces a three-year-old state law that prohibits short-term, high-interest payday loans.
Two Bainbridge-area lenders, Nathaniel Glenn and John Dunlap, challenged the law after they were convicted of 95 violations last year. They called the law unconstitutionally vague. They also argued that it limits Georgia lenders, but not out-of-state banks, which are governed by federal law.
The Court ruled that Glenn and Dunlap’s claims held no merits. Georgia lenders, it said, must follow state law.
"Appellants, as in-state lenders, are subject to Georgia statutes regulating or restricting high interest rates on loans, whereas the out-of-state banks are not," Presiding Justice Carol Hunstein wrote for the Court.
Earlier this year, the Georgia House of Representatives rejected a bill that would have legalized payday lending.
