If you spend any amount of time looking over GOLDPoint Systems documentation, you’ve probably come across the term GILA Loan once or twice. But what exactly IS a GILA loan?
GILA stands for Georgia Industrial Loan Act, which was passed in the state of Georgia (GA) in 1955 (Before we go on, yes, this means that our readers who don’t live or do business in GA can probably sit this one out). The purpose of this law is to regulate companies that service “small-dollar” loans or cash advances and protect consumers from predatory lending practices like excessive fees or interest rates.
GILA pertains to loans of $3,000 or less. For such loans, this law indicates maximum allowed thresholds for:
Under GILA, lenders are required to provide borrowers with itemized statements breaking down the loan amount, payment schedules and itemized charges/fees. The law also protects borrowers from being harassed by collectors if they fall behind on payments.
As is the case with almost all lending industry legislation, the specific guidelines of GILA change over time. What is consistent, however, is that you can always count on GOLDPoint Systems (GPS) to stay savvy on GILA requirements and ensure that your institution is protecting itself and its customers. Our loan servicing software includes options and calculations for managing GILA loans, and we adjust them as needed according to Georgia law.
If your institution services small-dollar loans in the state of Georgia, reach out to your GPS account manager today to discuss your status with GILA compliance. If you are not yet a client and think GPS might be a good fit for your institution, schedule a demo and let us show you how we can help your business flourish as we have for many others.