No Fax Payday Loan in Georgia – Quick and Easy

The ease of obtaining a no fax payday loan in Georgia led to the creation of a multibillion dollar payday loan industry in Georgia, with hundreds of unlicensed payday loan vendors opening shop. This led to severe abuse of borrowers, in terms of hefty interest charges and other hidden costs and penalties imposed in cases of default in repayment. Eventually, the State government had to intervene, in order to protect the consumers from lender exploitations in the online Georgia payday loan market.

Georgia Payday Lending Norms

Payday loan industry in the US is governed by State Laws. And Georgia has imposed some very strict measures of control on the local payday lending industry, in an effort to safeguard consumer interests. Unlicensed payday lending is totally illegal in Georgia. In order to give a no fax payday loan in Georgia, a lending company has to be licensed and registered with the local BBB of the state of Georgia.

Unlicensed payday loan vendors cannot charge an interest of more than 8% on a no fax Georgia payday loan issued by them. Not only that, they cannot tie up with any out-of-state bank either, for evading the State lending acts! Further, the Federal Truth in Lending Act requires full disclosure of the net APR imposed on the borrowers by the lending company, at the time of giving out a payday loan in Georgia. This Act facilitates to save consumers from hidden costs on the loan. And consumer grievance redressal systems have been put in place to handle user complaints.

Payday Loans Are “Short Term Loans” Only!

Though a no fax payday loan in Georgia can be acquired very easily these days, without going through the tedious traditional loan procedures, such a loan is secured by the high interest rates charged on the amount! A $100 loan amount generally costs an additional $15-$30 for a 2-week period, which calculates to an APR of about 390%. Now, while a no fax payday loan in Georgia can be a real life-saver in times of real emergency, such as when you are about to lose your golden credit rating for a few hundred bucks, it can create a huge financial mess in your life, if not repaid on time!

Getting into the habit of borrowing against your paycheck in advance, and then taking successive extensions on the loan, can put your financial accounts in a vicious debt cycle! So you need to be very careful in using a no fax payday loan in Georgia. And go for a traditional loan when you need money for longer term.

Source: http://www.articlesbase.com/finance-articles/no-fax-payday-loan-in-georgia-quick-and-easyf-300068.html