TexasARP Guidance: House Bill 718 on License Plates – Effective July 1, 2025

To: Texas Repossession Professionals

Date: July 1, 2025

Subject: Impact of Texas House Bill 718 on License Plate Procedures During Repossession

Effective today, July 1, 2025, Texas House Bill 718 officially takes effect, bringing significant changes to license plate issuance and handling within the state. As of this date, the State of Texas has not yet issued specific guidance for repossessors regarding the practical implementation of this new directive.

TexasARP’s Stance and Recommendation:

Given the lack of official guidance, TexasARP strongly advises all repossessors to maintain your current policies and procedures regarding license plates during repossession events.

Key Points to Remember:

License plates generally remain with the vehicle. This long-standing practice should continue.
Exceptions for Removal: License plates should be removed from the vehicle prior to its arrival at auction if they are:
- Handicap plates
- Out-of-state plates
- Personalized plates
Handling of Removed Plates: In these exceptional cases, removed license plates should be kept with the personal property found within the vehicle.

Texas House Bill 718 primarily focuses on the transition from paper temporary tags to permanent metal plates issued at the time of sale by licensed dealers, aiming to combat fraudulent use of paper tags. While the bill outlines new procedures for dealers regarding plate removal and transfer when a vehicle is sold or traded, its direct implications for repossessors who are not involved in the sale process are still awaiting clarification from the Texas Department of Motor Vehicles (TxDMV).

Stay Informed:

TexasARP is actively monitoring updates from the State of Texas and the TxDMV. We will promptly disseminate any new guidance or clarifications that impact repossession operations.

Questions or Concerns:

If you have any questions or concerns regarding this matter, please do not hesitate to reach out to TexasARP directly at info@texasarp.org.

Thank you for your continued dedication to compliant and professional repossession practices in Texas.

Sincerely,

The TexasARP Team

Stephanie Findley