05 LC 34
0209
Senate
Bill 198
By:
Senators Miles of the 43rd, Fort of the 39th and Tate of the 38th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Part 5 of Article 3 of Chapter 12 of Title 44 of the Official Code of
Georgia Annotated, relating to pawnbrokers, so as to limit the annual interest
rate chargeable on title loans; to provide for related matters; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Part
5 of Article 3 of Chapter 12 of Title 44 of the Official Code of Georgia
Annotated, relating to pawnbrokers, is amended by striking subparagraphs
(a)(4)(A) through (a)(4)(E) of Code Section 44-12-131, relating to the duration
of pawn transactions and restrictions on interest and fees, and inserting in
their place the following:
"(4)(A)
During the first 90 days of any pawn transaction or extension or continuation of
the pawn transaction,
except as
provided in subparagraph (C) of this
paragraph, a pawnbroker may charge for
each 30 day period interest and pawnshop charges which together equal no more
than 25 percent of the principal amount advanced, with a minimum charge of up to
$10.00 per 30 day period.
(B)
On any pawn transaction which is continued or extended beyond 90 days,
except as
provided in subparagraph (C) of this
paragraph, a pawnbroker may charge for
each 30 day period interest and pawnshop charges which together equal no more
than 12.5 percent of the principal amount advanced, with a minimum charge of up
to $5.00 per 30 day period.
(C)
Notwithstanding the provisions of subparagraphs (A) and (B) of this paragraph,
in a pawn transaction or in any extension or continuation of a pawn transaction
involving a motor vehicle or a motor vehicle certificate of title, a pawnbroker
may not charge any rate of interest greater than 5 percent per month, either
directly or indirectly.
(C)(D)
In addition to the charges provided for in
subparagraphs
(A) and (B)
subparagraph
(C) of this paragraph, in a pawn
transaction or in any extension or continuation of a pawn transaction involving
a motor vehicle or a motor vehicle certificate of title, a pawnbroker may charge
the following:
(i)
A fee equal to no more than any fee imposed by the appropriate state to register
a lien upon a motor vehicle title, but only if the pawnbroker actually registers
such a lien;
(ii)
No more than $5.00 per day in storage fees, but only if an actual repossession
pursuant to a default takes place on a vehicle which was not already in the
pawnbroker´s possession and only for each day the pawnbroker must actually
retain possession of the motor vehicle; and
(iii)
A repossession fee of $50.00 within 50 miles of the office where the pawn
originated, $100.00 within 51 to 100 miles, $150.00 within 101 to 300 miles and
a fee of $250.00 beyond 300 miles, but only if an actual repossession pursuant
to a default takes place on a vehicle which was not already in the
pawnbroker´s possession.
(D)(E)
If a pledgor or seller requests that the pawnbroker mail or ship the pledged
item to the pledgor or seller, a pawnbroker may charge a fee for the actual
shipping and mailing costs, plus a handling fee equal to not more than 50
percent of the actual shipping and mailing costs.
(E)(F)
In the event the pledgor or seller has lost or destroyed the original pawn
ticket, a pawnbroker may, at the time of redemption, charge a fee equal to not
more than
$2.00."
SECTION
2.
This
Act shall become effective on July 1, 2005.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.