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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements related to refunds and credit provided |
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under terminated debt cancellation agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 354.007, Finance Code, is amended by |
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amending Subsections (e), (f), and (g) and adding Subsection (e-1) |
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to read as follows: |
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(e) If the debt cancellation agreement terminates due to the |
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early termination of the contract, a [the] holder who is a retail |
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seller who has not assigned or transferred the contract shall: |
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(1) [,] not later than the 60th day after the date the |
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debt cancellation agreement terminates[: |
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[(1)] refund or credit an appropriate amount of the |
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debt cancellation agreement fee; or |
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(2) cause to be refunded or credited an appropriate |
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amount of the debt cancellation agreement fee by providing written |
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instruction not later than the 30th day after the date the debt |
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cancellation agreement terminates, including by electronic means, |
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to the administrator of the agreement [appropriate person]. |
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(e-1) If the debt cancellation agreement terminates due to |
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the early termination of the contract, a holder, other than a holder |
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described by Subsection (e), shall: |
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(1) not later than the 60th day after the date the debt |
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cancellation agreement terminates refund or credit an appropriate |
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amount of the debt cancellation agreement fee; or |
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(2) cause to be refunded or credited an appropriate |
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amount of the debt cancellation agreement fee by providing written |
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instruction not later than the 30th day after the date the debt |
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cancellation agreement terminates, including by electronic means, |
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to the administrator of the agreement or retail seller, as |
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appropriate. |
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(f) The administrator of the agreement or retail seller, |
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only after receiving the written instructions specified under |
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Subsection (e)(2) or (e-1)(2), [holder] shall ensure that a refund |
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or credit of an appropriate amount of a debt cancellation agreement |
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fee [made by another person under Subsection (e)(2)] is made not |
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later than the 60th day after the date the debt cancellation |
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agreement terminates. |
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(g) The administrator of the agreement or retail seller that |
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effectuated the refund [holder] shall maintain records of any |
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refund or credit of an amount of a debt cancellation agreement fee |
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made under Subsection (e) or (e-1) and provide electronic access to |
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those records until the later of the fourth anniversary of the date |
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of the contract or the second anniversary of the date of the refund |
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or credit. |
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SECTION 2. The changes in law made by this Act to Section |
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354.007, Finance Code, are procedural only and do not require the |
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refiling of forms to implement. |
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SECTION 3. This Act takes effect September 1, 2021. |