Predatory lending still a problem in Georgia

ATLANTA - When Pam Sanson needed a quick $300 to pay the bills, she never expected her decision would cost her more than $900 in interest in just six months. <br> <br> Such ``payday loans&#39;&#39; with exorbitant interest rates -- 600 percent in Sanson&#39;s case -- are supposed to be prohibited in Georgia, where state officials touted a crackdown on lenders who preyed on the poor. But thousands of such loan stores continue to operate around the country, especially in poor, minority neighborhoods. <br> <br> Georgia Insurance Commissioner John Oxendine says its like a virus. He adds, ``We&#39;ve been fighting them, and we&#39;re fighting them because that&#39;s the right thing. It&#39;s very frustrating -- we&#39;ll shut one guy down and a couple more will pop up.&#39;&#39; <br> <br> Despite state and federal laws meant to prevent predatory lending, payday loan stores continue to thrive, with at least 20,000 locations nationwide that take in $2.4 billion each year, according to a 2001 report from the Consumer Federation of America. <br> <br> The companies, which offer short-term loans quickly with few questions asked, charge as much as $30 every two weeks per $100 borrowed -- the equivalent of a 720 percent annual interest rate. In Georgia, interest on small loans can&#39;t legally exceed 60 percent.

http://accesswdun.com/article/2003/1/185449