Texas § FI.397.007 - ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS

§ FI.397.007. ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS

ADDITIONAL REQUIREMENTS FOR DEBT CANCELLATION AGREEMENTS. (a) If a lessee purchases a debt cancellation agreement, the lessor must provide to the lessee a true and correct copy of the agreement not later than the 10th day after the date of the lease. (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 lessor if: (1) the lease is already protected by gap insurance; or (2) the purchase of the debt cancellation agreement is required for the lessee to obtain the lease. (d) This section does not apply to a debt cancellation agreement offered in connection with the lease of a commercial vehicle. (e) The sale of a debt cancellation agreement must be for a single payment. (f) A holder that offers a debt cancellation agreement must report the sale of and forward money received on all such agreements to any designated party as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy, or other specified program documents. (g) Money received or held by a holder or any administrator of a debt cancellation agreement and belonging to an insurance company, holder, or administrator under the terms of a written agreement must be held by the holder or administrator in a fiduciary capacity. (h) A lessor that negotiates a debt cancellation agreement and subsequently assigns the lease shall maintain documents relating to the agreement that come into the lessor's possession. Added by Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052 ), Sec. 7, eff. September 1, 2017.