Texas Finance Code

§ 354.006 — ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS

FI § 354.006Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 354. DEBT CANCELLATION AGREEMENTS FOR CERTAIN RETAIL VEHICLE INSTALLMENT SALES

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(a)If a retail buyer purchases a debt cancellation agreement, the retail seller must provide to the retail buyer a true and correct copy of the agreement not later than the 10th day after the date of the contract.

(b)A holder must comply with the terms of a debt cancellation agreement not later than the 60th day after the date of receipt of all necessary information required by the holder or administrator of the agreement to process the request.

(c)A debt cancellation agreement may not knowingly be offered by a retail seller if:

(1)the contract is already protected by gap insurance; or

(2)the purchase of the debt cancellation agreement is required for the retail buyer to obtain the extension of credit.

(d)This section does not apply to a debt cancellation agreement offered in connection with the purchase of a commercial vehicle.

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