Enrolled Bill Summary

House Bill 2139 amends the Finance Code to allow a retail installment contract for the purchase of a motor vehicle to include a charge for a debt cancellation agreement or waiver by which the holder of the contract agrees to cancel the debt on the contract if the vehicle is rendered a total loss. The bill sets forth the method of computing the exact amount of the debt to be canceled, allows the holder to agree to waive the deductible amount on the buyer's collision insurance policy, and provides that a debt cancellation agreement or waiver is not insurance or an insurance product or service regulated by the insurance commissioner or the Texas Department of Insurance.