Tag: How to Start a Car Title Loan Business in Georgia

01
Mar

Georgia Car Title Loan Business Laws

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: AutomobilePawn.com