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HB 75 - Pawnshops; interest and fees; change amount

McBee, Louise (88th)	Heard, Keith G (89th)

Status Summary	HC:	B&B	SC:		FR:	01/13/99	LA:	01/14/99	H - Read 2nd Time

First Reader Summary

A BILL to amend Code Section 44-12-131 of the Official Code of Georgia Annotated, relating to duration of pawn transactions, legal rates of interest, and excessive interest, so a to change the amount of interest and other fees a pawnshop may legally charge; and for other purposes.

HB 75                                              LC 10 2592 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 44-12-131 of the Official Code of 
  1- 2  Georgia Annotated, relating to duration of pawn 
  1- 3  transactions, legal rates of interest, and excessive 
  1- 4  interest, so as to change the amount of interest and other 
  1- 5  fees a pawnshop may legally charge; to repeal conflicting 
  1- 6  laws; and for other purposes. 
 
  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 8                           SECTION 1. 
 
  1- 9  Code Section 44-12-131 of the Official Code of Georgia 
  1-10  Annotated, relating to duration of pawn transactions, legal 
  1-11  rates of interest, and excessive interest, is amended by 
  1-12  striking in its entirety paragraph (4) of subsection (a) and 
  1-13  inserting in lieu thereof a new paragraph (4) to read as 
  1-14  follows: 
 
  1-15        "(4)(A) During the first 90 days of any pawn 
  1-16        transaction or extension or continuation of the pawn 
  1-17        transaction, a pawnbroker may charge for each 30 day 
  1-18        period interest and pawnshop charges which together 
  1-19        equal no more than 25 10 percent of the principal 
  1-20        amount advanced, with a minimum charge of up to $10.00 
  1-21        per 30 day period. 
 
  1-22        (B) On any pawn transaction which is continued or 
  1-23        extended beyond 90 days, a pawnbroker may charge for 
  1-24        each 30 day period interest and pawnshop charges which 
  1-25        together equal no more than 12.5 5 percent of the 
  1-26        principal amount advanced, with a minimum charge of up 
  1-27        to $5.00 per 30 day period. 
 
  1-28        (C) In addition to the charges provided for in 
  1-29        subparagraphs (A) and (B) of this paragraph, in a pawn 
  1-30        transaction or in any extension or continuation of a 
  1-31        pawn transaction involving a motor vehicle or a motor 
  1-32        vehicle certificate of title, a pawnbroker may charge 
  1-33        the following: 
 
 
 
                                 -1- 
 
 
 
  2- 1          (i) A fee equal to no more than any fee imposed by 
  2- 2          the appropriate state to register a lien upon a 
  2- 3          motor vehicle title, but only if the pawnbroker 
  2- 4          actually registers such a lien; 
 
  2- 5          (ii) No more than $5.00 per day in storage fees, but 
  2- 6          only if an actual repossession pursuant to a default 
  2- 7          takes place on a vehicle which was not already in 
  2- 8          the pawnbroker's possession and only for each day 
  2- 9          the pawnbroker must actually retain possession of 
  2-10          the motor vehicle; and 
 
  2-11          (iii) A repossession fee of $50.00 within 50 miles 
  2-12          of the office where the pawn originated, $100.00 
  2-13          within 51 to 100 miles, $150.00 within 101 to 300 
  2-14          miles and a fee of $250.00 $100.00 beyond 300 50 
  2-15          miles, but only if an actual repossession pursuant 
  2-16          to a default takes place on a vehicle which was not 
  2-17          already in the pawnbroker's possession. 
 
  2-18        (D) If a pledgor or seller requests that the 
  2-19        pawnbroker mail or ship the pledged item to the 
  2-20        pledgor or seller, a pawnbroker may charge a fee for 
  2-21        the actual shipping and mailing costs, plus a handling 
  2-22        fee equal to not more than 50 percent of the actual 
  2-23        shipping and mailing costs. 
 
  2-24        (E) In the event the pledgor or seller has lost or 
  2-25        destroyed the original pawn ticket, a pawnbroker may, 
  2-26        at the time of redemption, charge a fee equal to not 
  2-27        more than $2.00." 
 
  2-28                           SECTION 2. 
 
  2-29  All laws and parts of laws in conflict with this Act are 
  2-30  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -2-