87R6988 MWC-F
By: Hughes S.B. No. 1504
A BILL TO BE ENTITLED
AN ACT
relating to requirements related to refunds and credit provided
under terminated debt cancellation agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 354.007, Finance Code, is amended by
amending Subsections (e), (f), and (g) and adding Subsection (e-1)
to read as follows:
(e) If the debt cancellation agreement terminates due to the
early termination of the contract, a [the] holder who is a retail
seller shall, not later than the 60th day after the date the debt
cancellation agreement terminates:
(1) refund or credit an appropriate amount of the debt
cancellation agreement fee; or
(2) cause to be refunded or credited an appropriate
amount of the debt cancellation agreement fee by providing written
instruction, including by electronic means, to the administrator of
the agreement [appropriate person].
(e-1) If the debt cancellation agreement terminates due to
the early termination of the contract, a holder, other than a retail
seller, shall, not later than the 30th day after the date the debt
cancellation agreement terminates:
(1) refund or credit an appropriate amount of the debt
cancellation agreement fee; or
(2) cause to be refunded or credited an appropriate
amount of the debt cancellation agreement fee by providing written
instruction, including by electronic means, to the administrator
of the agreement or retail seller, as appropriate.
(f) The administrator of the agreement or retail seller
[holder] shall ensure that a refund or credit of an amount of a debt
cancellation agreement fee made by another person under Subsection
(e)(2) or (e-1)(2) is made not later than the 60th day after the
date the debt cancellation agreement terminates.
(g) The administrator of the agreement or retail seller
[holder] shall maintain records of any refund or credit of an amount
of a debt cancellation agreement fee made under Subsection (e) or
(e-1) and provide electronic access to those records until the
later of the fourth anniversary of the date of the contract or the
second anniversary of the date of the refund or credit.
SECTION 2. This Act takes effect September 1, 2021.