Georgia Car Title Loan Business Laws

By | Mar 1, 2014

By: Trihouse Consulting. How to start a car title loan business in Georgia

Georgia regulates title loans as pawn loans, specifically including title lending in its definition of “pledged goods,” which the statute defines as “tangible personal property, including all types of motor vehicles or any motor vehicle certificate of title, which property is purchased by, deposited with, or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction.”

In addition to the general rules governing pawnbroking, Georgia’s car title statute has several rules that apply specifically to title lending.

Georgia has a disclosure requirement in addition to other disclosure rules similar to those required by federal law. Georgia car title loan lenders must include the statement: “Failure to make your payment as described in this document can result in the loss of your motor vehicle. The pawnbroker can also charge you certain fees if he or she actually repossesses the motor vehicle.”

Georgia mandates that car title loans be for 30 days. Georgia’s car title law does not govern rollovers and it puts caps on the fees that lenders may charge, although the caps are high.

If the borrower defaults, the Georgia car title statute enables the lender to repossess the vehicle, but it sets limits on the fees lenders can charge in connection with the repossession. Georgia prohibits agreements that make the borrower personally liable for the debt.

How to Start a car Title Loan Business:

6 Comments so far
  1. Bart March 10, 2014 2:36 pm

    So, where do I get the Georgia car title loan license? I just got a car title loan in Atlanta to see how this works. The potential profits are astounding. I want in. Where do I begin? You have a car title startup manual?

  2. Payday Loan Industry March 10, 2014 3:46 pm

    “Google” Georgia title loan license application or invest in our “How to Start a Car Title Loan Business” manual.

  3. BigSam March 17, 2014 6:39 am

    I opened three offices in the greater Atlanta area and one in north Ga. The one office near city center does OK, but the other three are tanking. TitleM@x has saturated this market to the point of absurdity. Do your homework and expect this to be like opening any other business with LOTS of competition. Time, good management, low overhead, reasonable expectations and adaptability are crucial. Try (if you can) to find a location that isn’t ‘owned’ by one of the big boys. Just my two cent$.

  4. Payday Loan Industry March 17, 2014 7:46 am

    Big Sam,

    Great points. The perception that overly optimistic profits are achievable in the car title lending space, or any other industry for that matter, attracts competition. Your goal of course is to “do it better.” You have the advantage of being nimble, building rapport with your customers, creating a culture of extraordinary customer service that a behemoth such as TitleMax simply cannot duplicate…

  5. LittleDave June 10, 2014 5:58 pm

    Question- the end of the article states that Georgia prohibits agreements that make the borrower personally liable for the debt. I have tried to locate the Georgia code or specific law that drives this. Would you please let me know the specific code or law for Georgia that creates this? thanks!

  6. Payday Loan Industry June 18, 2014 4:02 pm

    Go here to the Georgia finance regulator’s website: Georgia

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