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Bill

HB 1554

Collateral Protection Insurance Act; enact

2025-2026 Regular Session Introduced by Jutt Howard and 3 co-sponsors

Georgia legislation to regulate collateral protection insurance practices on secured loans, establishing consumer protections and standards for when lenders can impose insurance.

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Bill Summary · HB 1554

Legislative bill overview

HB 1554 proposes to enact a Collateral Protection Insurance Act in Georgia. This legislation would establish regulations governing collateral protection insurance (CPI)—insurance that lenders can force on borrowers to protect vehicles or property used as loan collateral when the borrower fails to maintain required coverage.

Why is this important

Collateral protection insurance practices significantly affect borrowers' costs and financial obligations. Currently, lenders can unilaterally impose CPI at high premiums without borrower consent, and these costs are often rolled into loan balances, increasing total debt. Clear statutory regulation would establish standards for when CPI can be used, pricing transparency, disclosure requirements, and borrower protections—directly impacting millions of Georgians with auto loans and other secured debts.

Potential points of contention

  • Consumer protection vs. lender interests: Advocates argue strong CPI regulations prevent predatory practices and excessive fees, while lenders contend regulations increase costs and restrict their ability to mitigate lending risk
  • Disclosure and transparency standards: Questions exist about what disclosures should be required, when borrowers must be notified, and whether lenders should have flexibility in CPI implementation
  • Rate and premium controls: Debate over whether the state should cap CPI premiums, establish rate-setting procedures, or allow market-based pricing

Compiled from official sources — confirm details with the bill’s official record.

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