By Alex Camardelle, Ph.D., February 2025 

Title lending is a type of loan where people borrow money using their car title as collateral. While it might sound like an easy way to get cash fast, title lending often traps people in a cycle of debt. This problem hits low-income and rural communities the hardest.  

What’s the problem with title lending? 

Title loans often charge outrageously high interest rates—sometimes up to 300 percent a year. Many borrowers cannot keep up with the payments, which puts them at risk of losing their cars. Without a car, it’s harder to get to work, school, or even the doctor. Losing a car can start a domino effect of problems that pushes families deeper into financial trouble.  

Here’s what’s happening in Georgia: 

• Economic impact estimates commissioned by Kindred Futures find that title loans drain $271 million from Georgia’s economy every year. Over the last 10 years, title lending is estimated ——— to have cost the state a whopping $2.6 billion. 

• The research also found that title lenders are clustered in low-income areas and communities of color, with Gwinnett County having the highest concentration of title lenders in the entire state of Georgia. 

• According to our estimates, title lending costs the state approximately 2,800 jobs each year because families spend so much on loan payments that they have less money to spend on things like groceries, clothes, and local businesses, which hurts small businesses and slows job growth.  

What is HB 300, and how does it help? 

House Bill 300 (HB 300) is a new proposal in Georgia that addresses title lending and the harm it causes. If passed, this bill would: 

• Ban Title Loans: It would stop pawnbrokers from using car titles as collateral for loans. 

• End Hidden Fees: HB 300 eliminates extra charges, like repossession fees, that make it even harder for borrowers to get out of debt. 

• Protect Borrowers: The bill would make lending practices clearer and ensure borrowers understand to the terms of their loan agreement. 

Why you should care: 

Title lending does not just hurt individuals—it harms entire communities. Our recent research found that most predatory lending targets low-income communities with high uninsured rates, effectively taking wealth from people who can least afford it. By taking money out of these areas, title loans make it harder for families to build wealth and for local businesses to thrive, creating a cycle of entrenched poverty. 

What could change with HB 300? 

• Families could keep more of their money to invest in what benefits them, like education, homeownership, or starting a small business. 

• Communities could see more jobs and opportunities as people spend money locally instead of sending it to predatory lenders. 

• Together we can create a more competitive economy that fundamentally works for all.  

A Step Toward Fairness: 

HB 300 is an important step towards a fairer financial system in Georgia.   By curbing the title loan industry, HB 300 could help protect families, support local economies, and create a better shot at community wealth building. 

Predatory lending is a big problem, but HB 300 shows that change is possible. Let’s keep pushing for policies that uplift communities and create a stronger, fairer Georgia for everyone.