Cracking Down on Payday Loans

They say these high interest cash advances are financial pitfalls for thousands. Georgia lawmakers say the ease of the no credit check, hassle free process of getting a payday loan has many cashing in on a web of financial debt.

"I think these lenders are lenders of last resort for desperate people. You can ban them but what are people going to do," says Bill Schwab.

Officials say these lenders prey on the poorest of people with interest rates of up to 25 percent, but folks at Advance America say they have a variety of customers, mostly doctors and teachers.

Officials say the loans are illegal under state law, but are not enforced.

"I do think the cash advance on their paycheck is preying on people who don't have any recourse, the high interest rates aren't helping them at all it's just getting them deeper into debt," Angela Matthews says.

The War in Iraq has brought this issue back to surface for lawmakers. They say military officials say their troops have had to leave the military because of debt associated with these loans. And this has caught the attention of Gov. Sonny Perdue.

"I think the house and senate will come together and pass good legislation that protects our men and women not only around military bases but all over the state,” says Gov. Sonny Perdue.

Some say a ban is not the solution for the sake of folks who rely on the loans through Hardshi, but rather educating about the risk of getting trapped in a cycle of debt.

Last year, a bill that set up tougher rules for lenders was stalled by the House committee. Wednesday, the House began looking at the issue again. All the stores refused to comment.