Loading chat...
GA SB371
Bill
Status
Introduced
2/10/2016
Primary Sponsor
Rick Jeffares
Click for details
AI Summary
- Creates a new "installment pawn transaction" category for pawn loans secured by a motor vehicle or motor vehicle certificate of title, with fixed repayment terms not exceeding 24 months (or 720 days) and substantially equal monthly installment payments
- Caps interest and pawnshop charges at 25% of principal per 30-day period for the first 90 days and 12.5% thereafter, with interest calculated on a simple daily basis (365-day year) and prohibits pre-computed, add-on, compounded, or advance-deducted interest
- Allows borrowers to prepay or redeem the vehicle at any time without penalty by paying the outstanding principal plus accrued interest and charges through the date of redemption
- Permits pawnbrokers to accelerate the maturity date upon a missed payment, provided the acceleration right was contracted for in writing and the borrower receives written notice by certified mail detailing amounts owed, the accelerated maturity date, and a 30-day grace period for redemption or to cure the delinquency
- Requires detailed written disclosure to borrowers including a payment schedule, annual percentage rate computed under the federal Truth in Lending Act, prepayment rights, grace period terms, and permitted fees for lien registration, storage (up to $5.00/day), and repossession ($50–$250 based on distance)
Legislative Description
Pawnbrokers; provide for installment pawn transactions; motor vehicle or motor vehicle certificate of title as security
Last Action
Senate Read and Referred
2/11/2016
Full Bill Text
No bill text available