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A BILL TO BE ENTITLED
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AN ACT
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relating to a restriction on the services provided by a credit |
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services organization with respect to certain extensions of |
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consumer credit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Section 393.308 to read as follows: |
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Sec. 393.308. SERVICES FOR CERTAIN LOANS PROHIBITED. (a) |
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This section does not apply to an extension of consumer credit for |
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the express purpose of financing the purchase of a motor vehicle |
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used as security for the debt. |
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(b) A credit services organization or a representative of |
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the organization may not obtain, facilitate, or assist in obtaining |
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an extension of consumer credit for a consumer in which any of the |
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following is given as security for or in connection with the debt: |
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(1) a motor vehicle certificate of title; |
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(2) the consumer's personal check to be cashed or |
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deposited at a designated future date; or |
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(3) an authorization to debit at a designated future |
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date a deposit account maintained by the consumer. |
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SECTION 2. This Act takes effect September 1, 2009. |