Georgia Border Residents Going out of State to Acquire Legal, Short-Term Cash Advances.

Half-a-Million Out-of-State Cash Advances Made to Georgians in 2006

Hundreds of Constituents Asking Legislators to Support HB 163

ATLANTA -- Residents from Georgia border towns like Toccoa, Augusta, Savannah, Waycross, Valdosta, Bainbridge, Columbus, LaGrange, Carrollton, Rome,

Records kept by cash advance companies that are members of the Community Financial Services Association of America (CFSA) show that in 2006, more than 500,000 cash advances were made to Georgians who crossed over into South Carolina, Florida, Alabama and Tennessee to take out legal cash advances to help with unplanned expenses.

And, to date, almost 1,000 Georgia citizens getting cash advances in Tennessee and South Carolina have signed letters or petitions to legislators urging passage of House Bill 163, according to Georgians for Cash Advance.

HB 163 is an industry reform bill which will provide licensing and regulation of cash advance stores, along with a host of consumer protections and safeguards. HB 163 would also provide for no accrued interest on cash advances, with only a one-time $15 fee for every $100 cash advance. The bill would not allow rollovers of cash advances and would prohibit cash advances to active duty members of the military and their dependents.

"You've got a half-million cash advances made to Georgians who are choosing this credit product across state lines, so the demand is clearly there," said Jabo Covert, a spokesperson for Georgians for Cash Advance. "Georgians who need a short-term cash advance to help them with unplanned expenses should not have to go to another state to get that help. These are voters and they are vocal, and they want the option in Georgia."

For more information, visit www.georgiansforcashadvance.org.

Georgia Residents Speak Out

Here are some of the nearly 1,000 comments written on their testimonials by Georgians who are currently using legal, out of state cash advances in South Carolina and Tennessee. (Names are withheld for privacy reasons).

A man in McCaysville, GA, wrote that the cash advance he obtained in Tennessee helped him with school supplies, his rent and car payment. He said the cost was less than other options, and the cash advance store staff was friendly.

A Mineral Bluff, GA resident said that all of the fees on his short-term cash advance were disclosed by the teller, they were on the paperwork for the advance, and they were posted on a large sign in the store. He said he needed the cash advance because his hours at work were reduced, but his bills remained the same.

A man in Epworth, GA said an unexpected expense created a temporary need for a cash advance so he could avoid over drafting his checking account.

A woman in Fortson, GA responded that she needed the cash advance because of an unexpectedly high power bill after a cold snap. She said the short term cash advance was her only option.

A woman in Chickamauga, GA wrote that she also used the cash advance because the amount of her paycheck varies and she had high electric bills to pay. She considered her bank or credit union, but the cash advance was less expensive.

A woman in Box Springs, GA said she had unexpected car repairs, considering borrowing from family or friends, but decided not to. She also had an option of over drafting her bank account, which she rejected because of the cost.

A man in Richmond Hill, GA said he was faced with higher than usual natural gas bills and medical expenses, and used cash advance to avoid over drafting his bank account. The cash advance was convenient, he said.

A Warrenton, GA man responded that he has a credit card, and had considered putting his car repairs on the card, but the cash advance was a cheaper option. He also said the fees for the advance were disclosed on the contract and on a large sign in the store.

And finally, a woman in Grovetown, GA said that she used cash advance to help with her rent and to avoid over drafting her checking account. She considered using a bank/credit union or credit card, but the cash advance was the most convenient option.