O.C.G.A.
O.C.G.A.

O.C.G.A. § 44-12-131 (2019)

Duration of pawn transactions; lease-back of motor

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
Find cases: SyfertCases citing this section GA-LEGlegis.ga.gov (official) JustiaJustia CornellLII Search CasesGoogle Scholar

vehicles prohibited; taking possession of motor vehicles; restrictions on interest, fees, or charges; action to recover excessive or undisclosed charges; consequences of excessive charges. (a)(1) All pawn transactions shall be for 30 day periods but may be extended or continued for additional 30 day periods. (2) A pawnbroker shall not lease back to the seller or pledgor any motor vehicle during a pawn transaction or during any extension or continuation of the pawn transaction. (3) Unless otherwise agreed, a pawnbroker has upon default the right to take possession of the motor vehicle. In taking possession, the pawnbroker or his agent may proceed without judicial process if this can be done without breach of the peace or may proceed by action. (4)(A) 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 25 percent of the principal amount advanced, with a minimum charge of up to $10.00 per 30 day period. (B) On any pawn transaction which is continued or extended beyond 90 days, 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. (C) In addition to the charges provided for in subparagraphs (A) and (B) of this paragraph, in a pawn transaction or in any extension or continuation of a pawn transaction involving a motor vehicle or a motor vehicle certificate of title, a pawnbroker may charge the following: (i) A fee equal to no more than any fee imposed by the appropriate state to register a lien upon a motor vehicle title, but only if the pawnbroker actually registers such a lien; (ii) No more than $5.00 per day in storage fees, but only if an actual repossession pursuant to a default takes place on a vehicle

which was not already in the pawnbroker’s possession and only for each day the pawnbroker must actually retain possession of the motor vehicle; and (iii) A repossession fee of $50.00 within 50 miles of the office where the pawn originated, $100.00 within 51 to 100 miles, $150.00 within 101 to 300 miles and a fee of $250.00 beyond 300 miles, but only if an actual repossession pursuant to a default takes place on a vehicle which was not already in the pawnbroker’s possession. (D) If a pledgor or seller requests that the pawnbroker mail or ship the pledged item to the pledgor or seller, a pawnbroker may charge a fee for the actual shipping and mailing costs, plus a handling fee equal to not more than 50 percent of the actual shipping and mailing costs. (E) In the event the pledgor or seller has lost or destroyed the original pawn ticket, a pawnbroker may, at the time of redemption, charge a fee equal to not more than $2.00. (5) No other charge or fee of any kind by whatever name denominated, including but not limited to any other storage fee for a motor vehicle, shall be made by a pawnbroker except as set out in paragraph (4) of this subsection. (6) No fee or charge provided for in this Code section may be imposed unless a disclosure regarding that fee or charge has been properly made as provided for in Code Section 44-12-138. (7)(A) Any interest, fees, or charges collected which are undisclosed, improperly disclosed, or in excess of that allowed by this subsection may be recovered by the pledgor or seller in an action at law in any superior court of appropriate jurisdiction. (B) In any such action in which the pledgor or seller prevails, the court shall also award reasonable attorneys’ fees, court costs, and any expenses of litigation to the pledgor or seller. (C) Before filing an action under this Code section, the pledgor or seller shall provide the pawnbroker with a written notice by certified mail or statutory overnight delivery, return receipt requested, that such an action is contemplated, identifying any fees or charges which the pledgor or seller contends are undisclosed, improperly disclosed, or in excess of the fees and charges allowed by this Code section. If the court finds that during the 30 days following receipt of this notice the pawnbroker made a good faith offer to return any excess, undisclosed, or improperly disclosed charges, the court shall award reasonable attorneys’ fees, court costs, and expenses of litigation to the pawnbroker.

(D) No action shall be brought under this Code section more than two years after the pledgor or seller knew or should have known of the excess, undisclosed, or improperly disclosed charges. (b) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amounts permitted under subsection (a) of this Code section shall be uncollectable and the pawn transaction shall be void. All interest and the pawnshop charge allowed under subsection (a) of this Code section shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month.

History

Code 1933, § 12-612, enacted by Ga. L. 1945, p. 189, § 1; Ga. L. 1989, p. 819, § 2; Ga. L. 1992, p. 3245, § 3; Ga. L. 2000, p. 1589, § 3. Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the 2000 amendment is applicable to notices delivered on or after July 1, 2000. The 2000 amendment, effective July 1, 2000, and applicable with respect to notices delivered on or after July 1, 2000, substituted “certified mail or statutory overnight delivery” for “certified mail” in

the first (a)(7)(C).

sentence

of

subparagraph

Annotations

Cross references. Criminal penalty for excessive interest, § 7-4-18. Law reviews. For note discussing transfer fees in home loan assumptions in reference to the Georgia usury laws, see 9 Ga. L. Rev. 454 (1975). For note on 1992 amendment of this Code section, see 9 Ga. St. U.L. Rev. 323 (1992).

JUDICIAL DECISIONS The terms “interest” and “pawnshop charges” are not synonymous or interchangeable, and both terms must be recognized as having individual importance within O.C.G.A. § 44-12-131. Fryer v. Easy Money Title Pawn, Inc., 183 B.R. 654, 1995 Bankr. LEXIS 886 (Bankr. S.D. Ga. 1995). Construed with § 7-4-18. - There is no conflict between O.C.G.A. §§ 7-4-18 and 44-12-131 since what is authorized by the pawnshop statute is a combination of charges up to 25% per month, not the imposition of interest alone at a rate of 25% per month. Fryer v. Easy Money Title Pawn, Inc., 183 B.R. 654, 1995 Bankr. LEXIS 886 (Bankr. S.D. Ga. 1995). O.C.G.A. § 44-12-131, not O.C.G.A. § 7-4-18, the criminal usury statute, governs pawnshop transactions. Glinton v. And R, Inc., 271 Ga. 864, 524 S.E.2d 481, 1999 Ga. LEXIS 1028 (1999). O.C.G.A. §§ 7-4-18 and 44-12-131, the criminal usury statute, are in conflict and cannot be reconciled. Hooks v. Cobb Ctr.

Pawn & Jewelry Brokers, Inc., 241 Ga. App. 305, 527 S.E.2d 566, 1999 Ga. App. LEXIS 1624 (1999), cert. denied, No. S00C0615, 2000 Ga. LEXIS 406 (Ga. May 5, 2000). The amount of interest on a pawn transaction was regulated by O.C.G.A. § 44-12131 and was not governed by the five percent limit imposed on general loans by the usury statute, O.C.G.A. § 7-4-18. Hooks v. Cobb Ctr. Pawn & Jewelry Brokers, Inc., 241 Ga. App. 305, 527 S.E.2d 566, 1999 Ga. App. LEXIS 1624 (1999), cert. denied, No. S00C0615, 2000 Ga. LEXIS 406 (Ga. May 5, 2000). Construction with §§ 44-12-130 and

Notes of Decisions
Cited in 22 cases (2 in the last 5 years), 1995–2022 · leading case: Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999).
Sort: Relevance Newest Treatment
Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999). · cites it 36× “The pawnbrokers moved to dismiss the complaint on the ground that the transactions are controlled by the statute regulating pawnbrokers, OCGA § 44-12-131, not the criminal usury statute.”
Spinner v. Cash in a Hurry, LLC (In Re Spinner), 398 B.R. 84 (Bankr. N.D. Ga. 2008). · cites it 16× “O.C.G.A. § 44-12-131. A pawn transaction must be for a thirty-day period with continuations of additional thirty-day periods.”
Hooks v. Cobb Ctr. Pawn & Jewelry Brokers, Inc., 527 S.E.2d 566 (Ga. Ct. App. 1999). · cites it 20× “In this regard, plaintiff contends that contrary to 300 percent as disclosed by the pawn ticket, the actual annual percentage rate of interest was 304.”
Marshall v. Speedee Cash of Georgia, 665 S.E.2d 888 (Ga. Ct. App. 2008). · cites it 14× “However, as argued by Speedee Cash (and noted by the trial court), OCGA § 44-12-131 (a) (1) requires that “[a]ll pawn transactions shall be for 30 day periods but may be extended or continued for additional 30 day periods.”
Bell v. Instant Car Title Loans (In Re Bell), 279 B.R. 890 (Bankr. N.D. Ga. 2002). · cites it 9× “§ 44-14-403 deals with the pawnbroker’s lien rights, the borrower’s right to redeem the pawned property, and the forfeiture of the pawned property to the pawnbroker upon the borrower’s failure to redeem it within the specified grace period.”
In re Howard, 507 B.R. 394 (Bankr. N.D. Ga. 2014). · cites it 8× “§ 44-12-130 defines a “pawn transaction” as “any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods may be redeemed or repurchased by the pledgor or seller for a fixed price within a fixed period of time.”
Max v. Northington (In Re Northington), 876 F.3d 1302 (11th Cir. 2017). · cites it 2× “See Ga. Code Ann. § 44-12-131 (a)(3). That, needless to say, would leave downtrodden debtors even worse off, and almost certainly less able to claw their way back to solvency.”
Mack v. Georgia Auto Pawn, Inc., 585 S.E.2d 661 (Ga. Ct. App. 2003). · cites it 14× “We agree and affirm the trial court’s dismissal of the complaint and the award of attorney fees under OCGA § 44-12-131 (a) (7) (C). On September 28, 2000, Sante L.”
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 322 (Bankr. S.D. Ga. 1995). · cites it 10× “§ 7-4-18, with O.C.G.A. § 44-12-131’s authorization of interest and pawnshop charges of up to 25% per month.”
Moore v. Complete Cash Holdings, LLC (In Re Moore), 448 B.R. 93 (Bankr. N.D. Ga. 2011). · cites it 2× “O.C.G.A. §§ 44-12-131(a)(l), 44-14-403(b)(2).”
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 654 (Bankr. S.D. Ga. 1995). · cites it 8× “6, 1994), the Georgia usury statute is inapplicable to pawnshops or pawn transactions, and hence that the 25% per month interest charge imposed by Easy Money in the pawn transaction at issue is authorized by O.C.G.A. § 44-12-131. In support of this argument, defendant has…”
Johnson v. Speedee Cash of Columbus, Inc. (In Re Johnson), 289 B.R. 251 (Bankr. M.D. Ga. 2002). · cites it 6× “See O.C.G.A. § 7-4-18. The Act allows Defendant to collect interest, charges, and fees on personal property pawns that would otherwise be considered usurious and criminal.”
Show all 22 citing cases →
— 44-12-131(a) — 1 case
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 322 (Bankr. S.D. Ga. 1995). “§ 7-4-18, with O.C.G.A. § 44-12-131’s authorization of interest and pawnshop charges of up to 25% per month.”
— 44-12-131(a)(1) — 5 cases
Bell v. Instant Car Title Loans (In Re Bell), 279 B.R. 890 (Bankr. N.D. Ga. 2002). “§ 44-14-403 deals with the pawnbroker’s lien rights, the borrower’s right to redeem the pawned property, and the forfeiture of the pawned property to the pawnbroker upon the borrower’s failure to redeem it within the specified grace period.”
In re Howard, 507 B.R. 394 (Bankr. N.D. Ga. 2014). “§ 44-12-130 defines a “pawn transaction” as “any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods may be redeemed or repurchased by the pledgor or seller for a fixed price within a fixed period of time.”
Betty J. Hamilton (Bankr. S.D. Ga. 2022).
Lisa L Snyder (Bankr. S.D. Ga. 2022).
Oletta Thorpe (Bankr. S.D. Ga. 2019).
— 44-12-131(a)(3) — 4 cases
In re Howard, 507 B.R. 394 (Bankr. N.D. Ga. 2014). “§ 44-12-130 defines a “pawn transaction” as “any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods may be redeemed or repurchased by the pledgor or seller for a fixed price within a fixed period of time.”
Oletta Thorpe (Bankr. S.D. Ga. 2019).
Lisa L Snyder (Bankr. S.D. Ga. 2022).
Betty J. Hamilton (Bankr. S.D. Ga. 2022).
— 44-12-131(a)(4) — 1 case
Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999). “The pawnbrokers moved to dismiss the complaint on the ground that the transactions are controlled by the statute regulating pawnbrokers, OCGA § 44-12-131, not the criminal usury statute.”
— 44-12-131(a)(4)(A) — 6 cases
Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999). “The pawnbrokers moved to dismiss the complaint on the ground that the transactions are controlled by the statute regulating pawnbrokers, OCGA § 44-12-131, not the criminal usury statute.”
Spinner v. Cash in a Hurry, LLC (In Re Spinner), 398 B.R. 84 (Bankr. N.D. Ga. 2008). “O.C.G.A. § 44-12-131. A pawn transaction must be for a thirty-day period with continuations of additional thirty-day periods.”
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 654 (Bankr. S.D. Ga. 1995). “6, 1994), the Georgia usury statute is inapplicable to pawnshops or pawn transactions, and hence that the 25% per month interest charge imposed by Easy Money in the pawn transaction at issue is authorized by O.C.G.A. § 44-12-131. In support of this argument, defendant has…”
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 322 (Bankr. S.D. Ga. 1995). “§ 7-4-18, with O.C.G.A. § 44-12-131’s authorization of interest and pawnshop charges of up to 25% per month.”
Bell v. Instant Car Title Loans (In Re Bell), 279 B.R. 890 (Bankr. N.D. Ga. 2002). “§ 44-14-403 deals with the pawnbroker’s lien rights, the borrower’s right to redeem the pawned property, and the forfeiture of the pawned property to the pawnbroker upon the borrower’s failure to redeem it within the specified grace period.”
— 44-12-131(a)(4)(B) — 2 cases
Spinner v. Cash in a Hurry, LLC (In Re Spinner), 398 B.R. 84 (Bankr. N.D. Ga. 2008). “O.C.G.A. § 44-12-131. A pawn transaction must be for a thirty-day period with continuations of additional thirty-day periods.”
Bell v. Instant Car Title Loans (In Re Bell), 279 B.R. 890 (Bankr. N.D. Ga. 2002). “§ 44-14-403 deals with the pawnbroker’s lien rights, the borrower’s right to redeem the pawned property, and the forfeiture of the pawned property to the pawnbroker upon the borrower’s failure to redeem it within the specified grace period.”
— 44-12-131(a)(4)(C) — 2 cases
Spinner v. Cash in a Hurry, LLC (In Re Spinner), 398 B.R. 84 (Bankr. N.D. Ga. 2008). “O.C.G.A. § 44-12-131. A pawn transaction must be for a thirty-day period with continuations of additional thirty-day periods.”
Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999). “The pawnbrokers moved to dismiss the complaint on the ground that the transactions are controlled by the statute regulating pawnbrokers, OCGA § 44-12-131, not the criminal usury statute.”
— 44-12-131(a)(4)(C)(ii) — 2 cases
Glinton v. & R, INC., 524 S.E.2d 481 (Ga. 1999). “The pawnbrokers moved to dismiss the complaint on the ground that the transactions are controlled by the statute regulating pawnbrokers, OCGA § 44-12-131, not the criminal usury statute.”
Betty J. Hamilton (Bankr. S.D. Ga. 2022).
— 44-12-131(a)(l) — 3 cases
Moore v. Complete Cash Holdings, LLC (In Re Moore), 448 B.R. 93 (Bankr. N.D. Ga. 2011). “O.C.G.A. §§ 44-12-131(a)(l), 44-14-403(b)(2).”
Johnson v. Speedee Cash of Columbus, Inc. (In Re Johnson), 289 B.R. 251 (Bankr. M.D. Ga. 2002). “See O.C.G.A. § 7-4-18. The Act allows Defendant to collect interest, charges, and fees on personal property pawns that would otherwise be considered usurious and criminal.”
In re Chastagner, 498 B.R. 376 (Bankr. S.D. Ga. 2013).
— 44-12-131(b) — 2 cases
Spinner v. Cash in a Hurry, LLC (In Re Spinner), 398 B.R. 84 (Bankr. N.D. Ga. 2008). “O.C.G.A. § 44-12-131. A pawn transaction must be for a thirty-day period with continuations of additional thirty-day periods.”
Fryer v. Easy Money Title Pawn, Inc. (In Re Fryer), 183 B.R. 322 (Bankr. S.D. Ga. 1995). “§ 7-4-18, with O.C.G.A. § 44-12-131’s authorization of interest and pawnshop charges of up to 25% per month.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.