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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of collateral in connection with certain |
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extensions of consumer credit that a credit access business obtains |
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for a consumer or assists a consumer in obtaining; providing a civil |
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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 393.629 to read as follows: |
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Sec. 393.629. SURPLUS PROCEEDS. (a) A credit access |
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business shall pay to the consumer the amount received by the |
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business from the sale of any property securing the extension of |
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consumer credit that exceeds the sum of the outstanding |
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indebtedness and unpaid fees owed by the consumer not later than the |
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14th day after the date of the sale. |
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(b) A credit access business that violates Subsection (a) is |
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liable to the state for a civil penalty of $50 for each violation. |
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Each day a continuing violation occurs constitutes a separate |
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violation. The attorney general or the appropriate prosecuting |
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attorney in the county in which the violation occurs may bring an |
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action to recover the civil penalty imposed under this section. |
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(c) Section 393.501 does not apply to this section. |
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SECTION 2. The change in law made by this Act applies only |
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to a sale that occurs on or after the effective date of this Act. A |
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sale that occurred before the effective date of this Act is governed |
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by the law in effect on the date the sale occurred, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |