| 1 | 1 | | 84R11473 GRM-D |
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| 2 | 2 | | By: Romero, Jr. H.B. No. 3223 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring a credit access business to verify the |
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| 8 | 8 | | vehicle identification number used to obtain a motor vehicle title |
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| 9 | 9 | | loan; adding a provision subject to a criminal penalty. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter G, Chapter 393, Finance Code, is |
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| 12 | 12 | | amended by adding Section 393.630 to read as follows: |
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| 13 | 13 | | Sec. 393.630. VERIFICATION OF MOTOR VEHICLE USED TO OBTAIN |
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| 14 | 14 | | MOTOR VEHICLE TITLE LOAN. (a) A credit access business may not |
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| 15 | 15 | | obtain for a consumer or assist a consumer in obtaining an extension |
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| 16 | 16 | | of consumer credit in the form of a motor vehicle title loan unless |
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| 17 | 17 | | the credit access business first: |
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| 18 | 18 | | (1) physically inspects the vehicle used as collateral |
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| 19 | 19 | | to obtain the extension of consumer credit; |
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| 20 | 20 | | (2) photographs the vehicle identification number |
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| 21 | 21 | | located on the vehicle used as collateral to obtain the extension of |
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| 22 | 22 | | consumer credit; and |
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| 23 | 23 | | (3) verifies that the vehicle identification number of |
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| 24 | 24 | | the motor vehicle used as collateral to obtain the extension of |
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| 25 | 25 | | consumer credit matches the vehicle identification number on the |
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| 26 | 26 | | title provided to obtain the extension of consumer credit. |
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| 27 | 27 | | (b) A credit access business must retain a photograph taken |
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| 28 | 28 | | as required by Subsection (a)(2) until the second anniversary of |
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| 29 | 29 | | the date the extension of consumer credit is made. |
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| 30 | 30 | | SECTION 2. The changes in law made by this Act apply only to |
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| 31 | 31 | | an extension of consumer credit made on or after the effective date |
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| 32 | 32 | | of this Act. An extension of consumer credit made before the |
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| 33 | 33 | | effective date of this Act is governed by the law in effect on the |
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| 34 | 34 | | date the extension of consumer credit was made, and the former law |
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| 35 | 35 | | is continued in effect for that purpose. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2015. |
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