Ga. Comp. R. & Regs. R. 80-14-4-.01 - Licensing Requirements and Exemptions

(1) The exemption from licensing provided pursuant to O.C.G.A. § 7-3-4(5) to an employee of a licensee, affiliate of a licensee, or exemptee applies only to natural persons who meet all of the following criteria:

(a)

(i) An employee must be employed by only one licensee or exemptee and work exclusively for that person; or

(ii) An employee of an affiliate of a licensee if prior written approval is obtained from the Department as provided in paragraph (2);

(b) An employee may not advertise, solicit, offer, or make installment loans for anyone else while claiming the exemption;

(c) An employee's procedures and activities must be supervised by the licensee or exemptee on a daily basis and the licensee or exemptee is responsible for the actions of such employees. This requirement is intended to make it clear that licensees, affiliates of licensees, and exemptees control and are accountable for the actions of their employees; and

(d) An employee may not be paid or compensated for the performance of installment lending activity as an independent contractor or on a 1099 basis.

(2) If a licensee wishes to utilize any employees of an affiliate to perform installment lending activities on behalf of the licensee, either presently or in the future, the licensee shall submit a written request for approval to the Department. The request shall identify the name of the affiliate that is supplying the employees and provide sufficient ownership information to establish that the entities are affiliated. In evaluating the request, the Department will take into consideration, the licensee's compliance with laws and rules, consumer complaints, and the interconnectedness of the entities. In the event the Department approves the licensee's request both the licensee and the affiliate will be responsible for the actions of the affiliate's employees while the employees are performing work on behalf of the licensee.

(3) For purposes of this rule, an "affiliate" is a person, other than an individual, where the person, or an individual owner of the person, owns, controls, or holds with the power to vote 20 percent or more of any class of voting securities or other ownership interest of the other person and is licensed by the Department as an installment lender.

(4) A natural person shall not be required to obtain a license under the Georgia Installment Loan Act if such natural person is not in the business of making installment loans or employed by a licensee or exemptee, makes five (5) or fewer installment loans in any one calendar year, and uses his or her own funds to make such loans for his or her own investment. Any unlicensed natural person who makes installment loans without meeting all of the foregoing requirements is in violation of O.C.G.A. § 7-3-4 and may be subject to an order to cease and desist.

Notes

Ga. Comp. R. & Regs. R. 80-14-4-.01

O.C.G.A. §§ 7-3-4, 7-3-45.

Original Rule entitled "Licensing Requirements and Exemptions" adopted. F. Aug. 19, 2020; eff. Sept. 8, 2020. Amended: F. Jan. 8, 2021; eff. Jan. 28, 2021.