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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 and the retail seller. |
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(f) The administrator of the agreement or the administrator |
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of the agreement and the retail seller, as applicable, not later |
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than the 30th day after receiving the written instructions |
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specified under Subsection (e)(2) or (e-1)(2), [holder] shall |
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provide [ensure that] a refund or credit of an amount of a debt |
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cancellation agreement fee proportional to the amount received by |
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the administrator and retail seller under the agreement [made by |
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another person under Subsection (e)(2) is made not later than the |
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60th day after the date the debt cancellation agreement |
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terminates]. |
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(g) The administrator of the agreement and the retail seller |
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[holder] shall maintain records of any refund or credit of an amount |
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of a debt cancellation agreement fee made under Subsection (e) or |
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(e-1) and provide electronic access to those records until the |
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later of the fourth anniversary of the date of the contract or the |
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second anniversary of the date of the refund 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, 2023. |