Tighter guidelines for name pawns in Georgia simply take another action

Tighter guidelines for name pawns in Georgia simply take another action

The Georgia State Capitol Building in Atlanta.

ATLANTA — Georgia lawmakers have advanced legislation to cap rates of interest charged by the state’s auto-title pawn industry that customer advocates claim trap low-income families with unjust financing techniques.

Title pawns proliferated when you look at the state adhering to a crackdown significantly more than a ten years ago on old-fashioned payday financing, in which cash-strapped people who have bad credit sign up for small loans at high rates of interest.

A person’s vehicle is used as collateral for a loan without the need for a credit check with title pawns. The loans carry high rates of interest, often times into the triple digits, and certainly will price borrowers their automobiles and the stability of any unpaid financial obligation upon standard. Continue reading “Tighter guidelines for name pawns in Georgia simply take another action”