12-1907-5061 For Immediate Release: 
 
Georgia House of Representatives Public Information Office 
Room 131, State Capitol 30334 404-656-5082 1-800-282-5800 
 
December 3, 2003 
 
Banking Committee Holds Final Meeting on Payday-Loan Bill 
 
Lawmakers Listen to Hours of Testimony 
Atlanta Members of the House Banking Committee met today for the third and final time on SB 157. The measure would eliminate payday-loans which are short term loans with high interest rates and no installment payments. They are given in anticipation of a person's next pay check and to qualify one must only have a bank account and a job. Credit history is not important. 
 
Several groups spoke in favor of eliminating payday-loans by putting teeth in the current law while others would rather see strict regulation of the industry. The practice is illegal in Georgia but only carries small penalties which many prosecutors feel are not worth pursuing. According to the Attorney General's Office, after sometimes years in court, these lenders will end up paying the fines, shut down the business and open up under a new name down the street. 
 
Capt. John Cahoon, Commanding Officer of the U.S. Naval Base at Kingsbay GA, who supports SB 157 said, "Many payday lenders locate near bases because they know young military personnel do not make much money and are unsophisticated borrowers. When our young men and women in uniform, who we have invested heavily in, end up owing thousands in loans with no end in sight it distracts from their service to our country and that is critical during a time of war." 
 
However, Jet Toney of the Georgia Community Services Financial Association countered, "There are plenty of bad lenders but a majority are good taxpaying business men and women who have excellent relationships with their customers. A regulated environment makes much more sense." 
 
Wrapping up, State Representative Johnny Floyd, D-Cordele, Chairman of the House Banks and Banking Committee said, "I would like to thank everyone who participated in this meeting. It was an excellent way to see how the general public feels and will provide insight on writing the most appropriate version of SB 157." 
# # # For further information, contact Rep. Floyd @ 404-656-5943