GA Code § 10-1-32 (2021)
2021 Georgia Code|Title 10 - Commerce and Trade|Chapter 1 - Selling and Other Trade Practices|Article 2 - Motor Vehicle Sales Financing|§ 10-1-32. Requirements for Retail Installment Contracts; Insurance; Delinquency Charges, Attorneys' Fees, and Costs; Receipts

  A retail installment contract shall be in writing, shall be signed by both the buyer and the seller, and shall be completed as to all essential provisions prior to the signing of the contract by the buyer.   The printed portion of the contract, other than instructions for completion, shall be in at least six-point type. The contract shall contain, in clear and conspicuous type, the following:   A specific statement that liability insurance coverage for bodily injury and property damage caused to others is not included, if that is the case; and   The following notice:     The seller shall present a completed copy of the contract to the buyer at the time it is signed by the buyer. Unless the seller does so, a buyer who has not accepted delivery of the motor vehicle shall have the right to rescind his agreement and to receive a refund of all payments made and return of all goods traded in to the seller on account of or in contemplation of the contract or, if such goods cannot be returned, the value thereof. Any acknowledgment by the buyer of receipt of a copy of the contract shall be in clear and conspicuous type and, if contained in the contract, shall appear directly above the buyer's signature. This subsection provides cumulative additional rights and is cumulative of Code Section 11-2-302.   The contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer, and a description of the motor vehicle, including its make, year model, model, and identification number or marks.     If any insurance is purchased by the holder of the retail installment contract, the amount charged therefor shall not exceed the applicable premiums chargeable in accordance with the rates filed with the Department of Insurance. If dual interest insurance on the motor vehicle is purchased by the holder, it shall, within 30 days after execution of the retail installment contract, send or cause to be sent to the buyer a policy or policies or certificate of insurance, written by an insurance company authorized to do business in this state, clearly setting forth the amount of the premium, the kind or kinds of insurance, the coverages, and all the terms, exceptions, limitations, restrictions, and conditions of the contract or contracts of insurance.   Nothing in this article shall impair or abrogate the right of a buyer, as defined in Code Section 10-1-31, to procure insurance from an agent and company of his own selection as provided by the insurance laws of this state; and nothing contained in this article shall modify, amend, alter, or repeal any of the insurance laws of the state.     If any insurance is canceled or the premium adjusted, unearned insurance premium refunds received by the holder shall be credited to the final maturing installment of the contract except to the extent applied toward payment for a similar insurance protecting the interests of the buyer and the holder or either of them.   The holder may, if the contract or refinancing agreement so provides, collect a delinquency charge on any installment which is not paid within ten days from the date the payment is due. Such charge may not exceed 5 percent of the installment or $50.00, whichever is less; provided, however, that if the contract or refinancing agreement is related to a truck with a gross vehicle weight rating (GVWR) exceeding 6,000 pounds (size Class 3 and above), truck tractor, trailer, or semitrailer used primarily for business or commercial purposes, such delinquency charge may not exceed 5 percent of the installment. A delinquent charge shall not be collected more than once for the same default. In addition to the delinquency and collection charge, the contract may provide for the payment of reasonable attorneys' fees where the contract is referred for collection to an attorney not a salaried employee of the holder of the contract, plus the court costs.   No retail installment contract shall be signed by any party thereto when it contains blank spaces to be filled in after it has been signed except that, if delivery of the motor vehicle is not made at the time of the execution of the contract, the identifying numbers or marks of the motor vehicle or similar information and the due date of the first installment may be left blank and later inserted by the seller in the seller's counterpart of the contract after it has been signed by the buyer. The buyer's written acknowledgment, conforming to the requirements of subsection (c) of this Code section, of delivery of a copy of a contract shall be presumptive proof of such delivery in any action or proceeding by or against the holder of the contract and that the contract, when signed, did not contain any blank spaces except as provided in this subsection.   If the buyer so requests, the holder shall give or forward to the buyer a receipt for any payment when made in cash.    Code Commission notes.   - Pursuant to Code Section 28-9-5, in 1996, the (1) and (2) designations were added in subsection (e).   Law reviews.   - For article, "Acceleration Clauses in Georgia: Consumer Installment Contracts and the Federal Truth-In-Lending Act," see 27 Mercer L. Rev. 969 (1976).   JUDICIAL DECISIONS    O.C.G.A.10-1-32 establishes requirements and prohibitions as to "retail installment contracts." Massey v. Stephens, 155 Ga. App. 243, 270 S.E.2d 796 (1980).   Not "retail installment transaction" when bank, not seller, obtains lien.    - When seller sold mobile home for a "cash sales price" and bank financed loan for the "cash sales price," the proceeds of which were then paid to the seller, the bank, not the seller, had a purchase money security interest in the mobile home and the actual sale was not a "retail installment transaction" under paragraphs (a)(9) and (a)(11) of this section. Massey v. Stephens, 155 Ga. App. 243, 270 S.E.2d 796 (1980).   Effect of signing contract without reading it.    - When one who can read signs a contract without apprising oneself of the contract's contents otherwise than by accepting representations made by the opposite party with whom there exists no fiduciary or confidential relation, one cannot defend an action based on the contract, or have the contract canceled or reformed, on the ground that the contract does not contain the contract actually made, unless it should appear that at the time one signed the contract some such emergency existed as would excuse one's failure to read the contract or that one's failure to read the contract was brought about by some misleading artifice or device perpetrated by the opposite party, amounting to actual fraud such as would reasonably prevent one from reading the contract. Green v. Ford Motor Credit Co., 146 Ga. App. 531, 246 S.E.2d 721 (1978).   No civil remedy for inadvertent failure to meet disclosure requirements.    - It being uncontroverted that the seller's failure to meet the disclosure requirements of O.C.G.A. § 10-1-32 was inadvertent rather than intentional, O.C.G.A. § 10-1-38(c) did not provide a civil remedy. Vickery v. Mobile Home Indus., Inc., 171 Ga. App. 566, 320 S.E.2d 633 (1984).    Cited in Layfield v. Bill Heard Chevrolet Co., 607 F.2d 1097 (5th Cir. 1979); Troutt v. Nash AMC/Jeep, Inc., 157 Ga. App. 399, 278 S.E.2d 54 (1981).   OPINIONS OF THE ATTORNEY GENERAL   Balloon payment permissible.    - Balloon payment on a retail installment contract is permissible under the Motor Vehicle Sales Finance Act, O.C.G.A. § 10-1-30 et seq. 1985 Op. Att'y Gen. No. 85-10.   RESEARCH REFERENCES   Am. Jur. 2d.   - 67 Am. Jur. 2d, Sales, § 589 et seq.   ALR.   - Construction of statutes regulating form and contents of motor vehicle installment sales contracts, 73 A.L.R.2d 1430, 46 A.L.R. Fed. 657.