Texas Finance Code

§ 397.004 — LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS

FI § 397.004Title 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES · Ch. 397. DEBT CANCELLATION AGREEMENTS FOR CERTAIN VEHICLE LEASES

Statute text

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(a)This chapter applies only to a debt cancellation agreement, including a gap waiver agreement or other similarly named agreement, that includes insurance coverage as part of the lessee's responsibility to the holder.

(b)The amount charged for a debt cancellation agreement made in connection with a lease may not exceed five percent of the adjusted capitalized cost financed pursuant to the lease.

(c)The debt cancellation agreement becomes a part of or a separate addendum to the lease and remains a term of the lease on the assignment, sale, or transfer by the holder.

Legislative history

Added by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 7, eff. September 1, 2017.