I recently ran across a very enlightening blog describing the activities of a fictional group called the Predatory Lending Association. A tounge in cheek creation of a legitimate organization called the Center for Responsible Lending, the PLA web site includes the following mission statement:
The Predatory Lending Association is dedicated to extracting maximum profit from the working poor by increasing payday loan fees and debt traps. The working poor are an exciting, fast growing demographic that includes: military personnel, minorities, and most of the middle class.
Although there is no such organization as the “Predatory Lending Association,” you may very well recognize some of the tactics and activities described.
The real web site for the Center for Responsible Lending includes a very interesting interview with the former manager of a payday loan store in which some of the very sleazy lending practices of this industry are described by someone who has been on the inside.
By in large, Georgia has done away with the payday loan industry by passing laws that limit interest rates and payday loan activities. However, it seems that every legislative session, lobbyists for the payday loan industry try to convince lawmakers that payday loans should be made legal again in Georgia. Should your state representative be tempted to change Georgia’s law, do not hesitate to make your views known using the information set out on the PLA site and on other Internet resources.
Thanks to Kevin Chern of the Bankruptcy Lawyers Blog for bringing this website to my attention.