H721 Summary: Title Pledge Amendments

• Allows pawnbrokers to accept motor vehicle titles as pledged goods in pawn transactions, in addition to physical possession of other personal property.

• Establishes separate interest rate caps for vehicle title pledges at 20% per month (compared to 2% per month for non-vehicle transactions) with allowable monthly fees up to 20% of the original principal amount.

• Requires pawnbrokers to note their lien on vehicle certificates of title, release liens upon full payment, and implement mandatory 5% principal reductions beginning on the third renewal of vehicle-secured transactions.

• Prohibits pawn transactions involving vehicle titles from exceeding $5,000 when combined with other outstanding transactions on the same title, requires clear title verification, and mandates military service members obtain written authorization from their company commander before pledging vehicles.

• Maintains nonrecourse nature of vehicle title pledges, meaning pledgors are not personally liable if the vehicle value is insufficient to cover the loan obligation.