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 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.