Lawmaker presents bill to require lenders to disclose if loans report to credit bureaus

Marvin presented HB1314 to the committee, saying the bill would require licensees under the Georgia Installment Lending Act (GILA) to disclose to borrowers whether a loan is reportable to a credit reporting agency.

Marvin said the measure is intended to increase consumer transparency, particularly for buy-now-pay-later (BNPL) products that often fall below $3,000 and therefore come under GILA. He told the committee that most BNPL loans are under $3,000 and that GILA covers roughly 15 licensees offering these products. Marvin said some lenders report repayment to credit bureaus to allow consumers to build credit, but that most lenders do not report; the bill would not mandate reporting, only require disclosure when a loan is reportable.

Committee members asked for clarification about what makes a loan reportable and whether there are costs to reporting. Marvin confirmed there are administrative and software costs associated with reporting to credit agencies but did not provide dollar figures. Members noted those costs could be passed on to borrowers. Marvin reiterated that the bill would not require a lender to report nor prescribe the specific form of disclosure; it would simply require a clear statement to the borrower when a loan is reportable.

A motion to advance HB1314 was made and seconded; the committee advanced the bill by voice vote. The transcript records questions and concerns about potential costs and how consumers might respond (some borrowers might avoid lenders that report), but the sponsor said the bill aims to make disclosure consistent so consumers can make informed choices.

Next steps were not specified in the transcript; the committee moved on after the voice vote.