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.
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