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GA HB902
Bill
Status
Introduced
2/12/2018
Primary Sponsor
Earl Ehrhart
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AI Summary
- Transfers regulatory authority over loans of $3,000 or less from the Industrial Loan Commissioner (under the Commissioner of Insurance) to the Department of Banking and Finance, effective July 1, 2018, including all personnel, records, property, pending actions, and existing rules
- Renames "industrial loans" as "small consumer finance loans" and redesignates the overseeing role as the "small consumer finance loan commissioner," held by the commissioner of banking and finance
- Requires licensees to participate in the Nation-wide Multistate Licensing System and Registry, submit to criminal background checks, provide a corporate surety bond (starting at $25,000 per location for three or fewer locations), and file timely reports of condition
- Establishes enhanced enforcement provisions including cease and desist authority, civil penalties of up to $1,000 per day for violations of final orders, subpoena power, and authority to suspend or revoke licenses for fraud, misrepresentation, unsafe operations, or failure to remit the required 3% tax on interest collected
- Retains existing loan terms allowing interest up to 10% per annum, a loan fee of up to 8% on the first $600 plus 4% on the excess, a $3.00 monthly maintenance charge, and a maximum repayment period of 36 months and 15 days, while exempting banks, credit unions, savings institutions, mortgage lenders, pawnbrokers, and educational entities from licensure requirements
Legislative Description
Georgia Small Consumer Finance Loan Act; enact
Last Action
House Second Readers
2/14/2018
Full Bill Text
No bill text available