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HB 178 in Texas House Causes Concerns for Lienholders Regarding Impounded Vehicles
Friday, March 31, 2017 6:55 AM

HB 178 by Rep. Eddie Lucio III (D-Brownsville) addresses the issue of uninsured drivers who are involved in accidents and not prevented from continuing to drive without insurance.

Under this bill, the car would be impounded, and the owner would have to show proof of insurance to reclaim it.

The law enforcement agency would be required to send notice to the lienholder. If the owner fails to obtain insurance and retrieve the car within 61 days, law enforcement may release the vehicle to the lienholder or its agent after presenting an affidavit establishing that the debt secured by the vehicle is in default or has matured. However, if the lienholder does not take possession, it forfeits interest and the law enforcement agency may auction the car.

The bill is pending in the House Insurance Committee.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or