Current through Rules and Regulations filed through March 20, 2024
(1) A licensee shall not engage in the business of installment lending at a location in this state unless the licensee has first received written approval from the Department.
(2) The "main office" is the physical location indicated on the license application or amendments thereto as the principal place of business, where the books and records are kept.
(3) A "branch" shall be any physical location, other than the principal place of business, where a licensee engages in the business of installment lending.
(4) For the main office and each proposed branch office, an applicant or licensee shall provide information establishing that approval of the proposed location will serve the convenience and advantage of the community. Such information shall include but is not limited to the following:
(a) An explanation as to whether the community will benefit from the applicant or licensee operating in the location;
(b) An explanation as to whether the community is presently offered this service and an estimate of the number of people not presently served;
(c) Statistics related to the growth of the community in relation to each of the following: population, retail stores, industry, industry payroll, retail sales, and income per capita;
(d) A projection of the growth of the proposed location for the first three years of operation, including the number of accounts, outstanding amounts, and source of customers;
(e) A diagram of the immediate community indicating the location of any currently operating installment loan licensees, sales finance companies, banks, credit unions, savings and loan institutions, and the proposed office; and,
(f) Other information relevant to the Department's consideration of the proposed location.
(5) Factors to be considered by the Department in making a determination as to whether a proposed location will serve the convenience and advantage of the community include but are not limited to the following:
(a) Whether the service offered will be responsive to the needs and convenience of borrowers and conducive to economic progress;
(b) The current economic condition or growth potential of the market of the proposed location, such that there does or will exist a volume of business for which the installment lender can realistically compete, what portion of that business the installment lender could acquire, and whether that portion is sufficient to generate a profit;
(c) The lending opportunity for the proposed location as indicated by population, employment, residential and commercial construction, sales, company payrolls, businesses established, geographic and environmental restrictions to further development, and other relevant indicators; and
(d) Whether the proposed location will result in a better matching of source and needs of funds, thereby providing the basis for improved customer service.
(6) Notwithstanding Paragraph 4 of this rule, the Department may waive the requirement for information regarding the convenience and advantage of the community if a licensee proposes to relocate an existing approved main office or branch office within the same community; however, the proposed relocation remains subject to prior written approval by the Department.
(7) A location, including a personal residence, shall be considered a branch of a licensee requiring approval for purposes of the Georgia Installment Loan Act ("Act") if any of the following conditions are met:
(a) The location address is printed on or contained in letterheads, business cards, announcements, advertisements, solicitations for business, flyers, brochures, or the like;
(b) Georgia consumers are received at the location or are directed to deliver any information by any means to the location;
(c) Loan files or any other books and records required by the Act or Department rules are located at the location; or
(d) The licensee directly or indirectly reimburses for rent, utility bills or other expenses incurred for use of a location as a branch.
(8) Notwithstanding Paragraph (4) of this rule, a location, including a personal residence, will not be deemed a branch and will be required to have its own license if:
(a) It is a franchise arrangement;
(b) It is a separate entity that may be referred to as a "net branch," and it is an independent business or installment loan operation which is not under the direct control, management, supervision and responsibility of the licensee;
(c) The licensee is not the lessee or owner of the branch and the branch is not under the direct and daily ownership, control, management, and supervision of the licensee;
(d) All employees, including the branch manager, do not meet the requirements for exemption from licensure in O.C.G.A. §
7-3-4(b)(5) and the rules of the Department;
(e) All assets and liabilities of the branch are not assets and liabilities of the licensee and income and expenses of the branch are not income and expenses of the licensee and are not properly accounted for in the financial records and tax returns of the licensee; or
(f) All practices, policies, and procedures, including but not limited to those relating to employment and operations, are not originated and established by the licensee and are not applied consistently to the main office and all branches.
(9) An unstaffed storage facility shall not constitute a branch.
(10) The mailing address of a licensee may be different from the main office address but shall be the address where the Department is authorized to send all correspondence, official notices and orders. The licensee is responsible for keeping the Department informed of any changes in this mailing address.
(11) Each licensee must keep the Department informed of the name, telephone number, and email address of the current contact person for consumer complaints, who is available and has authority to investigate and resolve questions and complaints from consumers which have come to the Department for resolution.
O.C.G.A. §§
7-3-22, 7-3-32.
