08 LC 34
1683
House
Bill 1344
By:
Representatives Golick of the
34th,
Tumlin of the
38th,
Benton of the
31st,
and Hill of the
21st
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 provide for the return of
sales surplus to the debtor; to provide for penalties; to provide for
disclosures; to provide for related matters; to provide an effective date and
applicability; 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 revising subsection (a) of
Code Section 44-12-131, relating to duration of pawn transactions and pawn
transactions involving motor vehicles, as follows:
"(a)(1)
All pawn transactions shall be for 30 day periods but may be extended or
continued for additional 30 day periods.
(2)
A pawnbroker shall not lease back to the seller or pledgor any motor vehicle
during a pawn transaction or during any extension or continuation of the pawn
transaction.
(3)(A)
Unless otherwise agreed, a pawnbroker has upon default the right to take
possession of
and
resell the motor vehicle. In taking
possession, the pawnbroker or his
or
her agent may proceed without judicial
process if this can be done without breach of the peace or may proceed by
action. Every
aspect of the resale of a motor vehicle repossessed by a pawnbroker, including
the method, manner, time, place, and other terms, shall be commercially
reasonable; provided, however, that a pawnbroker shall not purchase a motor
vehicle repossessed pursuant to any pledge or pawn of said motor vehicle in
favor of said pawnbroker.
(B)
A pawnbroker who repossesses and sells a motor vehicle held as security for a
pawn transaction shall, upon the sale of said motor vehicle, return to the
pledgor or seller any surplus remaining after the payment to the pawnbroker of
all expenses of repossession and sale allowed by this article.
(4)(A)
During the first 90 days of any pawn transaction or extension or continuation of
the pawn transaction, 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, 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)
In addition to the charges provided for in 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 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.;
and
(iv)
The reasonable expenses incurred by a pawnbroker in connection with the sale of
a repossessed motor vehicle, not otherwise prohibited by law, including
reasonable attorneys´ fees and other legal expenses.
(D)
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)
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.
(5)
No other charge or fee of any kind by whatever name denominated, including but
not limited to any other storage fee for a motor vehicle, shall be made by a
pawnbroker except as set out in paragraph (4) of this subsection.
(6)
No fee or charge provided for in this Code section may be imposed unless a
disclosure regarding that fee or charge has been properly made as provided for
in Code Section 44-12-138.
(7)(A)
Any interest, fees, or charges collected which are undisclosed, improperly
disclosed, or in excess of that allowed by this subsection may be recovered by
the pledgor or seller in an action at law in any superior court of appropriate
jurisdiction.
(B)
In any such action in which the pledgor or seller prevails, the court shall also
award reasonable attorneys´ fees, court costs, and any expenses of
litigation to the pledgor or seller.
(C)
Before filing an action under this Code section, the pledgor or seller shall
provide the pawnbroker with a written notice by certified mail or statutory
overnight delivery, return receipt requested, that such an action is
contemplated, identifying any fees or charges which the pledgor or seller
contends are undisclosed, improperly disclosed, or in excess of the fees and
charges allowed by this Code section. If the court finds that during the 30
days following receipt of this notice the pawnbroker made a good faith offer to
return any excess, undisclosed, or improperly disclosed charges, the court shall
award reasonable attorneys´ fees, court costs, and expenses of litigation
to the pawnbroker.
(D)
No action shall be brought under this Code section more than two years after the
pledgor or seller knew or should have known of the excess, undisclosed, or
improperly disclosed charges."
SECTION
2.
Said
part is further amended by striking "or" at the end of paragraph (7); by
striking the comma at the end of paragraph (8) and inserting in lieu thereof ";
or"; and by adding a new paragraph (9) immediately following paragraph (8) of
subsection (a) of Code Section 44-12-137, relating to prohibited acts and
penalties in pawn transactions, as follows:
"(9)
Fail to disclose the pledgor´s or seller´s right to receive any
surplus remaining after payment to the pawnbroker of the reasonable expenses of
repossession and sale of a motor vehicle repossessed and sold in satisfaction of
a pawn transaction,"
SECTION
3.
Said
part is further amended by revising paragraphs (16) and (17) of subsection (b)
of Code Section 44-12-138, relating to restrictions on advertising and
disclosure statements in pawn transactions, as follows:
"(16)
A statement that any costs to ship the pledged items to the pledgor or seller
can be charged to the pledgor or seller, along with a handling fee to equal no
more than 50 percent of the actual costs to ship the pledged items;
and
(17)
A statement that a fee of up to $2.00 can be charged for each lost or destroyed
pawn
ticket.;
and
(18)
A statement that the pledgor or seller has the right to receive any surplus
remaining after payment to the pawnbroker of the reasonable expenses of
repossession and sale of a motor vehicle repossessed and sold in satisfaction of
a pawn transaction."
SECTION
4.
This
Act shall become effective on July 1, 2008, and shall apply to all pawn
transactions entered into on or after that date.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.