Texas 2017 - 85th Regular

Texas House Bill HB2339

Filed
 
Out of House Committee
 
Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 

Caption

Relating to trade-in credit agreements offered in connection with certain motor vehicle retail installment contracts.

Impact

The implementation of HB2339 is expected to influence state laws related to consumer financing and retail vehicle sales. By establishing distinct provisions for trade-in credit agreements, the bill enhances consumer clarity regarding their rights and the terms under which they can access trade-in credits. The Finance Code will be amended to formally define these agreements and set parameters for the fees and documentation required to activate the credits. This change could lead to more transparency in motor vehicle transactions, benefiting consumers involved in retail installment agreements.

Summary

House Bill 2339 introduces regulations regarding trade-in credit agreements associated with certain motor vehicle retail installment contracts. Specifically, the bill stipulates that a trade-in credit agreement allows a retail seller to provide a specified amount as a credit for diminished vehicle value when a car has been damaged in an accident but is not totaled. This new framework aims to create clear guidelines for both consumers and retailers, ensuring that trade-in credits are recognized as separate agreements from retail installment contracts.

Sentiment

The general sentiment surrounding HB2339 appears to be positive, particularly among consumer advocacy groups that support measures aiming to protect buyers in vehicle transactions. Lawmakers have shown broad support for the bill, recognizing the potential to simplify understanding and enhance protections in the financing of motor vehicle purchases. Nonetheless, concerns could arise regarding compliance and the potential for confusion among consumers if the implementation details are not clearly communicated.

Contention

Despite the favorable reception, there are discussions on the potential challenges of enforcing the new regulations, especially regarding the caps on fees associated with trade-in credit agreements. Stakeholders worry about the implications for both consumers and retailers, with some expressing caution regarding how these agreements correlate with existing insurance and financing products. Additionally, some members in the finance and automotive sectors have raised questions on the practicality of the provisions that require insurers to be involved with trade-in credit agreements, prompting calls for further surveillance on enforcement mechanisms.

Companion Bills

No companion bills found.

Previously Filed As

TX HB4915

Relating to the deceptive trade practice of excluding mandatory fees or charges from an advertised, displayed, or offered price.

TX HB1321

Relating to certain insurance practices with respect to repair of motor vehicles.

TX SB1464

Relating to prohibiting a retail seller of motor vehicles from imposing certain restrictions on the purchase of a motor vehicle.

TX SB2250

Relating to the execution of a certificate of completion and to imposing certain requirements under a retail installment contract for the purchase of solar panels.

TX HB4602

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

TX HB718

Relating to the issuance of certain tags, permits, and license plates authorizing the movement of vehicles and the transfer and renewal of certain license plates.

TX HB3209

Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

TX HB4078

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

TX SB2099

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.

TX HB4424

Relating to an exception to the titling requirement for certain motor vehicles; creating a criminal offense.

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