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GA HB891

Bill

Status

Introduced

2/3/2016

Primary Sponsor

Christian Coomer

Click for details

Origin

House of Representatives

2015-2016 Regular Session

AI Summary

  • Amends Georgia's industrial loan law (Code Section 7-3-14) to allow licensees to elect an alternative charge structure in lieu of currently authorized charges, including a transaction charge of up to 10% of the amount financed and tiered monthly installment account handling charges ranging from $3.05 to $5.00 per $100 of the contract face amount, depending on loan size
  • Caps loans under the alternative charge structure at $3,000 maximum face amount with terms between 4 and 36 months, requires equal installment repayments, and prohibits any insurance, ancillary, or other charges beyond those specifically enumerated (e.g., closing fees, dishonored check fees, security interest filing fees)
  • Grants borrowers a 3-business-day right of cancellation on loans made under the alternative charge structure, with full refund of collected fees upon return of the loan principal; this cancellation right may not be waived
  • Allows a late/delinquent charge of $15.00 or 5¢ per $1.00 of any installment not paid within 5 days of the due date, whichever is greater, collected no more than once per default
  • Renames "industrial loans" to "installment loans" throughout the Georgia Code, updating references across Titles 7, 10, 16, 18, and 45 in 14 specific Code sections

Legislative Description

Banking and finance; industrial loans; provide for alternative charges to those currently authorized

Last Action

House Second Readers

2/8/2016

Full Bill Text

No bill text available