Bears Lending
Under O.C.G.A. §44-12-130 and following, a Georgia pawnbroker can accept a motor vehicle title as pledged goods. The borrower keeps possession of the vehicle; the pawnbroker holds the title. That single fact makes a Georgia title pawn work like a title loan anywhere else — but the charges and the consequences follow pawn rules, not loan rules.
1. The 25% charge, and the step-down
A Georgia title pawn is written in 30-day periods. The pawnbroker may charge up to 25% of the principal per period for the first three periods (90 days). From the fourth period onward the maximum drops to 12.5% per period.
| Period | Max charge on $2,000 | Cumulative if renewed only |
|---|---|---|
| 1 (days 1–30) | $500 | $500 |
| 2 | $500 | $1,000 |
| 3 | $500 | $1,500 |
| 4 | $250 | $1,750 |
| 5 | $250 | $2,000 |
| 6 | $250 | $2,250 |
Renew-only is the expensive path: after six months you've paid $2,250 and still owe $2,000. The statute also lets you pay down principal at any renewal, which reduces every future charge.
On that $2,000 pawn, paying $400 of principal with each renewal clears the loan in five months for about $1,400 less in charges. Bears Lending stores show both paths on the ticket.
2. You keep the car
The pawnbroker holds the certificate of title only. You keep the vehicle, the keys and your insurance, and you drive it as normal. Nothing about the pawn restricts use of the car.
3. How much you can pawn
Georgia sets no statutory cap; the amount is a percentage of the vehicle's value. Bears Lending lends up to 50% of wholesale value with a $5,000 ceiling, based on a 10-minute inspection. The title must be lien-free and in your name — a financed vehicle can't be pawned.
4. If you don't pay: notice and right to cure
A pawn that goes unpaid past its period doesn't default instantly. Georgia requires the pawnbroker to hold pledged goods 30 days past the maturity date before disposing of them, and for title pawns, Bears Lending sends written notice by mail and text with a 30-day right to cure. Redeeming during that window costs the accrued charge only — no penalties.
If the pawn is never redeemed, the pawnbroker may repossess the vehicle. Because it's a pawn, that ends the matter: there is no deficiency balance and nothing goes to collections.
5. Redemption and getting the title back
Pay the principal plus the current period's charge and the pawn is redeemed. At Bears Lending the title and a signed lien release are handed back in store the same day. If a lien was recorded with the DMV, the release lets you clear it.
6. Who regulates it
Pawnbrokers in Georgia are licensed by county and municipal authorities and must comply with the state pawn statute; the Georgia Department of Banking and Finance handles the industrial loan and check-casher licenses that cover our other Georgia products. Complaints about a title pawn go to the local licensing authority or the Attorney General's consumer protection division.
What this means at the counter
- 25% per 30 days for three periods, then 12.5% — pay down principal to cut every future charge.
- You keep driving. The pawnbroker holds paper, not keys.
- Unpaid pawns get written notice and 30 days to cure before anything happens.
- A forfeited title pawn ends with the vehicle; there is no deficiency balance.
Questions
Is a Georgia title pawn the same as a title loan?
Functionally yes — you keep the car and the lender holds the title. Legally it's a pawn, which caps charges at 25%/12.5% and means no deficiency balance after repossession.
Can I pawn a car I'm still paying off?
No. The title must be lien-free and in your name.
What if I need more than 90 days?
You can keep renewing indefinitely at 12.5% per period after the third, but paying down principal is almost always cheaper than renewing.