| 1 | 1 | | 84R9008 GRM-D |
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| 2 | 2 | | By: Turner of Tarrant H.B. No. 3599 |
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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 the sale of collateral in connection with certain |
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| 8 | 8 | | extensions of consumer credit that a credit access business obtains |
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| 9 | 9 | | for a consumer or assists a consumer in obtaining; providing a civil |
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| 10 | 10 | | penalty. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter G, Chapter 393, Finance Code, is |
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| 13 | 13 | | amended by adding Section 393.629 to read as follows: |
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| 14 | 14 | | Sec. 393.629. SURPLUS PROCEEDS. (a) A credit access |
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| 15 | 15 | | business shall pay to the consumer the amount received by the |
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| 16 | 16 | | business from the sale of any property securing the extension of |
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| 17 | 17 | | consumer credit that exceeds the sum of the outstanding |
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| 18 | 18 | | indebtedness and unpaid fees owed by the consumer not later than the |
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| 19 | 19 | | 14th day after the date of the sale. |
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| 20 | 20 | | (b) A credit access business that violates Subsection (a) is |
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| 21 | 21 | | liable to the state for a civil penalty of $50 for each violation. |
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| 22 | 22 | | Each day a continuing violation occurs constitutes a separate |
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| 23 | 23 | | violation. The attorney general or the appropriate prosecuting |
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| 24 | 24 | | attorney in the county in which the violation occurs may bring an |
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| 25 | 25 | | action to recover the civil penalty imposed under this section. |
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| 26 | 26 | | (c) Section 393.501 does not apply to this section. |
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| 27 | 27 | | SECTION 2. The change in law made by this Act applies only |
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| 28 | 28 | | to a sale that occurs on or after the effective date of this Act. A |
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| 29 | 29 | | sale that occurred before the effective date of this Act is governed |
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| 30 | 30 | | by the law in effect on the date the sale occurred, and the former |
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| 31 | 31 | | law is continued in effect for that purpose. |
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| 32 | 32 | | SECTION 3. This Act takes effect September 1, 2015. |
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