Changes in federal banking regulations and a 2004 Georgia statute on lending practices have driven most payday lenders out of the state. But payday lenders are still fighting class action suits against them in Georgia courts, and have turned to the federal courts for help. They recently won a victory at the 11th Circuit, but an unusual concurring opinion indicates the court soon may reconsider an aspect of an esoteric topic law students encounter their first month of school -- subject-matter jurisdiction.
May 09, 2007 at 12:00 AM
1 minute read
The original version of this story was published on National Law Journal
Recent changes in federal banking regulations and a 2004 Georgia statute on lending practices have driven most payday lenders out of the state.
While the Georgia Legislature showed payday lenders the door, it opened up another avenue of litigation for those who say they’ve been preyed upon by payday loan shops, by allowing for private suits. Former Gov. Roy E. Barnes seized on that opportunity, bringing at least three putative class actions in state courts on behalf of consumers.
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