Georgia House of Representatives - 1995/1996 Sessions

HB 181 - Pawned vehicles; interest and repossession fee

Page Numbers - 1/ 2

1. Hugley  133rd          2. Taylor  134th           3. Heard  89th
4. James  140th           5. Mobley  69th            6. Stanley  49th


House Comm: Judy       /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              1/12/95  Read 1st Time                                                                
              1/13/95  Read 2nd Time                                                                
              ----------------------------------------                                              
                                                                                                    
Code Sections amended: 44-12-131,                                                                   


HB 181                                            LC 11 8464






                        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, so as to change the interest and repossession
  1- 4  fees for pawn transactions involving motor vehicles or
  1- 5  certificates of title therefor; to repeal conflicting laws;
  1- 6  and for other purposes.

  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 8  Code Section 44-12-131 of the Official Code of Georgia
  1- 9  Annotated, relating to duration of pawn transactions, is
  1-10  amended by striking paragraph (4) of subsection (a) thereof
  1-11  and inserting in its place the following:

  1-12        "(4)(A) During the first 90 days of any pawn
  1-13        transaction or extension or continuation of the pawn
  1-14        transaction, other than a transaction involving a
  1-15        motor vehicle or a motor vehicle certificate of title,
  1-16        a pawnbroker may charge for each 30 day period
  1-17        interest and pawnshop charges which together equal no
  1-18        more than 25 percent of the principal amount advanced,
  1-19        with a minimum charge of up to $10.00 per 30 day
  1-20        period.

  1-21        (A.1) During the first 90 days of any pawn transaction
  1-22        or extension or continuation of the pawn transaction
  1-23        involving a motor vehicle or a motor vehicle
  1-24        certificate of title, a pawnbroker may charge for each
  1-25        30 day period interest and pawnshop charges which
  1-26        together equal no more than 15 percent of the
  1-27        principal amount advanced, with a minimum charge of up
  1-28        to $10.00 per 30 day period.

  1-29        (B) On any pawn transaction which is continued or
  1-30        extended beyond 90 days, a pawnbroker may charge for
  1-31        each 30 day period interest and pawnshop charges which
  1-32        together equal no more than 12.5 percent of the



                                 -1- (Index)

                                                  LC 11 8464

  2- 1        principal amount advanced, with a minimum charge of up
  2- 2        to $5.00 per 30 day period.

  2- 3        (C) In addition to the charges provided for in
  2- 4        subparagraphs (A) and (B) of this paragraph, in a pawn
  2- 5        transaction or in any extension or continuation of a
  2- 6        pawn transaction involving a motor vehicle or a motor
  2- 7        vehicle certificate of title, a pawnbroker may charge
  2- 8        the following:

  2- 9          (i) A fee equal to no more than any fee imposed by
  2-10          the appropriate state to register a lien upon a
  2-11          motor vehicle title, but only if the pawnbroker
  2-12          actually registers such a lien;

  2-13          (ii) No more than $5.00 per day in storage fees, but
  2-14          only if an actual repossession pursuant to a default
  2-15          takes place on a vehicle which was not already in
  2-16          the pawnbroker's possession and only for each day
  2-17          the pawnbroker must actually retain possession of
  2-18          the motor vehicle; and

  2-19          (iii) A repossession fee of $50.00 within 50 miles
  2-20          of the office where the pawn originated, $100.00
  2-21          within 51 to 100 miles, $150.00 within 101 to 300
  2-22          miles and a fee of $250.00 $100.00 beyond 300 50
  2-23          miles, but only if an actual repossession pursuant
  2-24          to a default takes place on a vehicle which was not
  2-25          already in the pawnbroker's possession.

  2-26        (D) If a pledgor or seller requests that the
  2-27        pawnbroker mail or ship the pledged item to the
  2-28        pledgor or seller, a pawnbroker may charge a fee for
  2-29        the actual shipping and mailing costs, plus a handling
  2-30        fee equal to not more than 50 percent of the actual
  2-31        shipping and mailing costs.

  2-32        (E) In the event the pledgor or seller has lost or
  2-33        destroyed the original pawn ticket, a pawnbroker may,
  2-34        at the time of redemption, charge a fee equal to not
  2-35        more than $2.00."

                         SECTION 2.

  2-36  All laws and parts of laws in conflict with this Act are
  2-37  repealed.






                                 -2- (Index)