Representative Josh Bonner (R-Fayetteville) introduced HB 342, the Motor Vehicle Title Loan Act, to require statewide regulation of car title lenders who prey on cash-strapped Georgia families, often trapping them in a cycle of debt. Many consumers turn to car title loans in times of crisis only to find out later that these high-interest loans spell big trouble. To protect Georgians, we support the passage of HB 342 to:
- Require regulation of motor vehicle title lenders by the Department of Banking and Finance, which regulates all other lenders in the state.
- Make car title loans subject to small-dollar lending interest rate caps and other consumer protections.
- Require lenders to return to the borrower any surplus obtained if the vehicle is repossessed and sold.
This bill received a hearing but, unfortunately, did not get a vote in committee in the 2023 session. We continued to work off-session, so the bill gets not only a hearing but also a vote in the second year of the biennial, and hopefully becomes law in 2024.
Read our latest updates on title loans:
TitleMax demands high-interest payments from borrowers in bankruptcy
How Georgia’s top GOP leaders have blocked title lending reform
Proposed bill would close loophole, putting restrictions on title pawn companies
Bill would make car title loans subject to state’s cap on interest rates
