Title pawn loans attacked at Gainesville hearing

GAINESVILLE - A consumer watchdog group, Georgia Watch, told a state House study committee, meeting in Gainesville Thursday, title pawn loans, with their triple-digit interest rates, have trapped Georgia families into an endless cycle of debt. But, an industry representative defended the loans, saying they fill a need of some Georgians.

State Representative James Mills of Gainesville was on the legislative panel and is the author of a bill that requires title pawn companies that repossess a car to give any extra money from the proceeds of the sale - above and beyond the loan and fees - to the original owner.

Georgia Watch complained that title pawn brokers offer short-term, high-interest loans and target low-income borrowers, taking their car titles as collateral with the promise of fast cash. The committee was told when borrowers cannot service payments on the interest, they pawn brokers take possession of borrowers' cars

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