Two loans (loansmilitary.com and armedforcesloans.com)

You have heard right, forwarding payday loans to the Georgian residents is indeed illegal. :D

Hey guy2545, this is what I could gather from internet about the Georgia laws on payday loans, charging over 60% on a loan less that $3,000 is considered as felony in Georgia. And since 2004, payday loans were declared as illegal in the state of GA.

Please let us know if any further assistance is required :)

What does this part mean in regards to fees?




With both of these companies charging almost 50% in fees does that also cross the legal threshold? Lastly, what happens if I signed the loan form and it stated something like "this loan is deemed to take place is such and such location" From what I've been reading statements like that in Georgia are also illegal?

Does anyone have any sample debt validation letters? Or letters informing these companies they are violating Georgia state law?

Thanks so very much everyone!!

a lot of payday lenders will use that to confuse the borrower.payday loans are illegal in georgia.let them know that when you send your letter,don't let them tell you otherwise.

Are you in the armed forces?

If so, there are federal laws pertaining to payday loans given to members of the armed forces. Those would work much better then GA laws . . . .

Yes I am in the armed forces. Are these considered payday loans if there is a loan term of 12 months? There was no credit check and the only thing that guaranties the loan is the fact I had to setup an allotment for it.

Thanks again!

No, they wouldn't be payday loan if they have a term of 12 months and you pay a fixed amount each month.

Do you pay a fixed amount each month?

If these are really payday loans, here is some information I found:

They are not payday loans . . . . They are installement loans.

Both companies are based out of Nevada.

Since they are installment loans, different laws apply then those posted above . . . . Unfortuantly installment loans are usually legal . . . . . And can be hell to get out from under.

I believe they are still required to follow Georgia Law since they are not FDIC insured. I can find no record for them with the FDIC. I've posted the specific section of the Georgia law...I've looked up the references listed in there and I don't believe they apply to either organization because they are not licensed in Georgia. Any thoughts?

Okay, just got off the phone with the Georgia department of Industrial Lending. These loans are illegal because they are less than $3000 and the lending institutions are not licensed in the state of Georgia nor are they licensed in another state and insured by the FDIC. I'm contacting my AG now to figure out what I need to do now.

Thanks again!!

I think you may be correct - I also could not verify that they were backed by FDIC insured banks.

Do you still have a copy of your contract with them? If you do you could look on that and see who, if anyone, is backing the loans.

I do have the documentation from the loans. It does not list anywhere on there that they are back by any FDIC insured institution. I spoke with the AG for Georgia and informed her of the situation. She is going to research these corporations and if she finds what I said is true, she will send them a letter stating that they have received a consumer complaint regarding their lending practices and that they are required to follow Georgia's lending law or cease issuing loans for Georgia residents. I'm trying to tell as many people as I can about my situation and this website. Hopefully no one else will have to go through this!

I serve in the miltary, also. PDL companies are breaking the law, if they 'loan' money to people. however...someone had made a brief statement about Installment loans. For example...Cash Call. Cash Call is NOT a PDL...I barrowed money from them in the past (BIG mistake)and they DO verify your military income. However, they CAN (legally) give you a loan. Installment loans ARE, "hell to get out from under."

Question for everyone here: technically, as we know, these loans are not PDL's, which are banned to military members. I thought that the law that was passed capped the interest on any loans to military members at 36 percent, am I right? If so, what is the interest rate for these loans, and if it's over 36 percent, I think that would be grounds to declare it illegal.

Well..with Cash Call?..they have a 95%-99% rate.

There are laws passed that limits interest rates for pay day loans at 36% for the military. However, the law is very narrow in focus, it only applies to loans that are less than 91 days. That's why you have probably notice a big increase in either "open ended loans" or loans with terms longer than 90 days. The law protecting the military does not apply to these loans since the term is greater than 90 days. However Georgia law does apply because the amount is less than $3000 and the simple interest rate is greater than 16% including fees.

I received the letters the Georgia AG has sent to these two companies. They are basically the same some I'm only posting one.

For Guy 2545. i"m a reporter in Atlanta interested in doing a story on these military loan companies.
please reply to [email]strickland@wsbtv.com[/email] with contact info.
My bio is posted at wsbtv.com. Im legit.

Most of you know I'm in the miltary. Alot of PDL applications ask if the person serves in the military..Active, Reserves, or National Guard. MOST PDL's are illegal. So, they don't 'loan' out for militsry personal. However..some people DO lie on applications and state they do not serve in the military. I don't know if PDL's can actually find out that information or not.

You might want to call the federal government on this one. Also thanks for all you do to protect our freedom.

Thank you for the comment. I've served in the military for (about?) 12 years now. It's been an experience..I DO have to say that. Back to the loans......loansmilitary (dot) com,etc. Someone said above they charge 80% interest?? My goodness!! Or..did I misread this? WOW!! Sounds like another 'Cash Call' thing. Yep..I said that, too, in one of the posts above.