Georgia Senate Bill SB451

Georgia 2023-2024 Regular Session

• Introduced: 2/1/24
• Refer: 2/6/24
• Report Pass: 2/26/24
• Engrossed: 2/29/24
• Report Pass: 3/13/24

Caption

Veteran Benefits; place certain requirement on the Department of Veterans Service

Impact

The introduction of SB451 amends existing laws regarding pawnbrokers in Georgia, adding a layer of protection for military personnel. By defining 'covered borrowers' in accordance with federal regulations, the bill seeks to ensure that service members, who may be in vulnerable financial situations, are not subjected to exploitative loan terms. The bill plans to impose a civil penalty on pawnbrokers who violate these provisions, which further emphasizes the seriousness of consumer protection in this context.

Summary

SB451 addresses the issue of pawnbrokers' transactions involving covered borrowers, specifically those who are active military members or related persons. The bill establishes certain protections for these individuals by prohibiting pawnbrokers from executing title pawn transactions involving motor vehicles or motor vehicle certificates of title with covered borrowers. This legislative move is aimed at safeguarding those who serve in the military from potentially predatory lending practices often associated with pawn transactions.

Sentiment

The overall sentiment regarding SB451 appears to be positive, especially among legislators and advocacy groups focused on protecting the rights of military personnel. The bill has garnered bipartisan support, reflecting a consensus on the importance of shielding military families from financial hardships. However, there may be some concerns from industry stakeholders regarding the implications on their business practices, particularly those involved in the pawn industry who might view these regulations as restrictive.

Contention

While SB451 is largely seen as a protective measure, contention may arise from discussions around the balance between consumer protection and the ability of pawnbrokers to operate. Some opponents may argue that imposing strict regulations could limit the availability of services for individuals looking for quick cash solutions. Conversely, supporters argue that the potential for abuse in pawn transactions necessitates such restrictions to uphold ethical standards in lending practices, particularly for a vulnerable population like military members.