Electronic Document Submission For Communication

The Department is implementing electronic document submission for correspondence in order to improve our service. Regular and ongoing communication should be submitted to your designated Department receiver through e-mail.

Pawnshops / Title Pawn

The Department of Banking and Finance DOESN’T license or have jurisdiction over pawnbrokers or pawn deals. The information that is following for informational purposes simply to direct consumers towards the appropriate agency for resolving their issue or issue.

JURISDICTION:

As given to in Georgia legislation, municipal authorities may license pawnbrokers, determine their abilities and privileges by ordinance, enforce fees upon them, revoke their licenses, and exercise such basic guidance because will make sure reasonable working between your pawnbroker and their customers. In many situations, the municipal authority accountable for certification and monitoring pawnshops could be the neighborhood authorities division or sheriff’s workplace.

DEFINITIONS:

As defined in Georgia legislation, a « pawnbroker » means anybody involved with entire or in component in the industry of lending cash on the protection of pledged products, or in the business enterprise of buying concrete individual home from the condition so it might be redeemed or repurchased because of the vendor for a set price within a set duration of the time, or perhaps in business of buying tangible personal home from individuals or sources apart from manufacturers or licensed dealers as part of or in combination with all the business tasks described in this paragraph.

A « pawn deal » means any loan from the safety of pledged items or any purchase of pledged products in the condition that the pledged items might be redeemed or repurchased by the pledgor or vendor for a hard and fast price within a hard and fast duration of the time.

RESTRICTIONS ON CHARGES:

Licensed pawnbrokers, as defined in Georgia legislation (Code part 44-12-130), are restricted within the quantity of interest they might charge only because of the limits established in Code Section 44-12-131.

A pawnbroker may charge for each 30 day period interest and pawnshop charges which together equal no more than 25 percent of the principal amount advanced, with a minimum charge of up to $10.00 per 30 day period during the first 90 days of any pawn transaction or extension or continuation of the pawn transaction.

A pawnbroker may charge for each 30 day period interest and pawnshop charges which together equal no more than 12.5 percent of the principal amount advanced, with a minimum charge of up to $5.00 per 30 day period if the pawn transaction is continued or extended beyond 90 days.

Besides the fees noted above, in a pawn deal or perhaps in any expansion or extension of the pawn deal involving an auto or an automobile certification of name, a pawnbroker may charge additional charges. Failure which will make payments as decided within the pawn deal may lead to repossession of one’s automobile, when you look at the full situation of the name loan.

CONSUMER DISCLOSURE(S):

The customer ought to be supplied with a written disclosure admission or declaration in just about every pawn deal which includes the annotated following:

  • « this really is a pawn deal. Failure in order to make your repayments as described in this document can lead to the increased loss of the item that is pawned. The pawnbroker can offer or keep carefully the product for those who have perhaps perhaps perhaps not made all re payments by the specified readiness date. »;
  • A statement as follows: « Failure to make your payment as described in this document can result in the loss of your motor vehicle if the pawned item is a motor vehicle or motor vehicle certificate of title. The pawnbroker may also ask you for specific costs she actually repossesses the automobile. » if he or;
  • A declaration that the length of the pawn deal is thirty day period and therefore it could simply be renewed with all the contract of both events and just for thirty day incremental durations;
  • The percentage that is annual, computed relative to the federal Truth in Lending Act and laws underneath the federal Truth in Lending Act, when it comes to very very first 1 month of this deal, computed as though all interest and pawnshop fees were regarded as interest;
  • The apr, for every thirty day duration where the pawn deal may be proceeded or extended, computed as though all interest and pawnshop fees had been regarded as interest. For purposes of distinguishing the apr after the 2nd extension or expansion, an individual declaration which identifies a yearly portion price for every single feasible one month duration thereafter is permissible;
  • A declaration in dollar levels of just how much you will be charged the vendor or pledgor to redeem the goods in virtually any 30 time duration following the very first thirty day amount of the pawn transaction, so long as all costs and fees are held present;
  • A statement for the maturity that is specific regarding the pawn deal;
  • A statement of the length of time, the elegance duration, the pledged items could be redeemed following the certain maturity date and also the dollar quantity that will be needed to redeem the pledged items following the certain readiness date;
  • A declaration that following the elegance duration the pledged items end up being the home associated with the pawnbroker;
  • A statement that the pawnbroker may not charge a storage fee for the motor vehicle unless the pawnbroker repossesses the motor vehicle pursuant to a default if the pawn transaction involves a motor vehicle or motor vehicle certificate of title
  • In the event that pawn deal involves an automobile or car certificate of name, a declaration that the pawnbroker may charge a storage space fee for the repossessed automobile never to go beyond $5.00 a day, but only when the pawnbroker really repossesses and also must keep the car;
  • A statement that the pawnbroker may charge a repossession fee, not to exceed $50.00, but only if the pawnbroker actually repossesses the motor vehicle if the pawn transaction involves a motor vehicle or motor vehicle certificate of title
  • In the event that pawn deal involves an automobile or car certification of name, a declaration that the pawnbroker may charge a fee to join up a lien upon the automobile certification of name, not to ever go beyond any cost really charged by the right state to join up a lien upon an auto certification of title, but only when the pawnbroker actually puts this kind of lien upon the automobile certification of name;
  • A declaration that any expenses to deliver the pledged what to the pledgor or vendor could be charged towards the pledgor or vendor, and also a maneuvering cost to equal a maximum of 50 per cent regarding the real expenses to deliver the pledged products; and
  • A declaration that the charge as much as $2.00 may be charged for every destroyed or lost pawn solution.