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A BILL TO BE ENTITLED
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AN ACT
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relating to the repossession of a motor vehicle after default on a |
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motor vehicle title loan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 393, Finance Code, is amended by adding |
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Subchapter G-1 to read as follows: |
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SUBCHAPTER G-1. REPOSSESSION OF MOTOR VEHICLE AFTER DEFAULT |
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Sec. 393.651. DEFINITIONS. In this subchapter, "credit |
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access business" and "motor vehicle title loan" have the meanings |
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assigned by Section 393.601. |
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Sec. 393.652. APPLICABILITY. This subchapter applies only |
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to a motor vehicle title loan that a credit access business obtained |
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for a consumer or assisted a consumer in obtaining under this |
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chapter. |
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Sec. 393.653. RESTRICTION ON COLLECTION OF DEFICIENCY |
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BALANCE AFTER REPOSSESSION SALE. Notwithstanding any other law, a |
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credit access business or other person who repossesses a motor |
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vehicle given as security for a motor vehicle title loan after a |
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default under the loan may not collect from the consumer any |
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deficiency resulting from the sale of the vehicle unless, before |
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the vehicle is repossessed, the consumer: |
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(1) damages the vehicle; or |
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(2) wrongfully fails, after default and demand, to |
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make the vehicle available to the lender or other person. |
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SECTION 2. The changes in law made by this Act apply only to |
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a motor vehicle title loan entered into on or after the effective |
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date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |