Texas Senate Bill SB1504

Texas 2021 - 87th Regular

Caption

Relating to requirements related to refunds and credit provided under terminated debt cancellation agreements.

Impact

The enactment of SB1504 will significantly modify how financial institutions and retail providers handle debt cancellation agreements. It imposes stricter timelines for refunds or credits and mandates better record-keeping practices for administrators of these agreements. By ensuring that consumers receive their refunds in a timely manner, the bill aims to enhance consumer protection legislation and maintain healthy financial practices within the state.

Summary

Senate Bill 1504 focuses on the requirements surrounding refunds and credits provided under terminated debt cancellation agreements in Texas. Specifically, it seeks to amend the Finance Code, mandating that if a debt cancellation agreement is terminated early, the responsible parties must execute refunds or credits within set timelines. Retail sellers must process these within 60 days, while other holders have a 30-day window. This change aims to standardize practices across the industry, ensuring consumers receive timely restitution when agreements are canceled prematurely.

Contention

This bill has garnered attention due to concerns regarding the compliance burden it places on holders of debt cancellation agreements. While consumer advocates support the intent of the bill to protect consumers from potential delays in refunds, some stakeholders have expressed that tighter timelines may lead to operational challenges for smaller retailers. Additionally, discussions have highlighted the potential implications for administrative processes, pushing firms to adapt swiftly to these changes in the law.