| 1 | 1 | | 88R7024 JES-D |
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| 2 | 2 | | By: Walle H.B. No. 2410 |
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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 repossession of a motor vehicle after default on a |
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| 8 | 8 | | motor vehicle title loan. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 393, Finance Code, is amended by adding |
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| 11 | 11 | | Subchapter G-1 to read as follows: |
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| 12 | 12 | | SUBCHAPTER G-1. REPOSSESSION OF MOTOR VEHICLE AFTER DEFAULT |
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| 13 | 13 | | Sec. 393.651. DEFINITIONS. In this subchapter, "credit |
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| 14 | 14 | | access business" and "motor vehicle title loan" have the meanings |
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| 15 | 15 | | assigned by Section 393.601. |
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| 16 | 16 | | Sec. 393.652. APPLICABILITY. This subchapter applies only |
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| 17 | 17 | | to a motor vehicle title loan that a credit access business obtained |
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| 18 | 18 | | for a consumer or assisted a consumer in obtaining under this |
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| 19 | 19 | | chapter. |
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| 20 | 20 | | Sec. 393.653. RESTRICTION ON COLLECTION OF DEFICIENCY |
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| 21 | 21 | | BALANCE AFTER REPOSSESSION SALE. Notwithstanding any other law, a |
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| 22 | 22 | | credit access business or other person who repossesses a motor |
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| 23 | 23 | | vehicle given as security for a motor vehicle title loan after a |
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| 24 | 24 | | default under the loan may not collect from the consumer any |
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| 25 | 25 | | deficiency resulting from the sale of the vehicle unless, before |
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| 26 | 26 | | the vehicle is repossessed, the consumer: |
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| 27 | 27 | | (1) damages the vehicle; or |
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| 28 | 28 | | (2) wrongfully fails, after default and demand, to |
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| 29 | 29 | | make the vehicle available to the lender or other person. |
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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 | | a motor vehicle title loan entered into on or after the effective |
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| 32 | 32 | | date of this Act. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2023. |
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