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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring a credit access business to verify the |
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vehicle identification number used to obtain a motor vehicle title |
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loan; adding a provision subject to a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 393, Finance Code, is |
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amended by adding Section 393.630 to read as follows: |
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Sec. 393.630. VERIFICATION OF MOTOR VEHICLE USED TO OBTAIN |
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MOTOR VEHICLE TITLE LOAN. (a) A credit access business may not |
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obtain for a consumer or assist a consumer in obtaining an extension |
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of consumer credit in the form of a motor vehicle title loan unless |
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the credit access business first: |
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(1) physically inspects the vehicle used as collateral |
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to obtain the extension of consumer credit; |
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(2) photographs the vehicle identification number |
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located on the vehicle used as collateral to obtain the extension of |
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consumer credit; and |
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(3) verifies that the vehicle identification number of |
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the motor vehicle used as collateral to obtain the extension of |
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consumer credit matches the vehicle identification number on the |
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title provided to obtain the extension of consumer credit. |
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(b) A credit access business must retain a photograph taken |
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as required by Subsection (a)(2) until the second anniversary of |
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the date the extension of consumer credit is made. |
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SECTION 2. The changes in law made by this Act apply only to |
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an extension of consumer credit made on or after the effective date |
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of this Act. An extension of consumer credit made before the |
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effective date of this Act is governed by the law in effect on the |
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date the extension of consumer credit was made, and the former law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |