| 1 | 1 | | By: Menéndez S.B. No. 2228 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to requirements related to refunds and credit provided |
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| 7 | 7 | | under terminated debt cancellation agreements. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 354.007, Finance Code, is amended by |
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| 10 | 10 | | amending Subsections (e), (f), and (g) and adding Subsection (e-1) |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (e) If the debt cancellation agreement terminates due to the |
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| 13 | 13 | | early termination of the contract, a [the] holder who is a retail |
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| 14 | 14 | | seller who has not assigned or transferred the contract shall: |
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| 15 | 15 | | (1) [,] not later than the 60th day after the date the |
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| 16 | 16 | | debt cancellation agreement terminates[: |
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| 17 | 17 | | [(1)] refund or credit an appropriate amount of the |
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| 18 | 18 | | debt cancellation agreement fee; or |
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| 19 | 19 | | (2) cause to be refunded or credited an appropriate |
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| 20 | 20 | | amount of the debt cancellation agreement fee by providing written |
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| 21 | 21 | | instruction not later than the 30th day after the date the debt |
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| 22 | 22 | | cancellation agreement terminates, including by electronic means, |
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| 23 | 23 | | to the administrator of the agreement [appropriate person]. |
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| 24 | 24 | | (e-1) If the debt cancellation agreement terminates due to |
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| 25 | 25 | | the early termination of the contract, a holder, other than a holder |
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| 26 | 26 | | described by Subsection (e), shall: |
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| 27 | 27 | | (1) not later than the 60th day after the date the debt |
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| 28 | 28 | | cancellation agreement terminates refund or credit an appropriate |
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| 29 | 29 | | amount of the debt cancellation agreement fee; or |
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| 30 | 30 | | (2) cause to be refunded or credited an appropriate |
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| 31 | 31 | | amount of the debt cancellation agreement fee by providing written |
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| 32 | 32 | | instruction not later than the 30th day after the date the debt |
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| 33 | 33 | | cancellation agreement terminates, including by electronic means, |
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| 34 | 34 | | to the administrator of the agreement or retail seller, as |
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| 35 | 35 | | appropriate. |
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| 36 | 36 | | (f) The administrator of the agreement or retail seller, |
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| 37 | 37 | | only after receiving the written instructions specified under |
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| 38 | 38 | | Subsection (e)(2) or (e-1)(2), [holder] shall ensure that a refund |
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| 39 | 39 | | or credit of an appropriate amount of a debt cancellation agreement |
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| 40 | 40 | | fee [made by another person under Subsection (e)(2)] is made not |
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| 41 | 41 | | later than the 60th day after the date the debt cancellation |
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| 42 | 42 | | agreement terminates. |
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| 43 | 43 | | (g) The administrator of the agreement or retail seller that |
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| 44 | 44 | | effectuated the refund [holder] shall maintain records of any |
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| 45 | 45 | | refund or credit of an amount of a debt cancellation agreement fee |
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| 46 | 46 | | made under Subsection (e) or (e-1) and provide electronic access to |
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| 47 | 47 | | those records until the later of the fourth anniversary of the date |
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| 48 | 48 | | of the contract or the second anniversary of the date of the refund |
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| 49 | 49 | | or credit. |
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| 50 | 50 | | SECTION 2. The changes in law made by this Act to Section |
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| 51 | 51 | | 354.007, Finance Code, are procedural only and do not require the |
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| 52 | 52 | | refiling of forms to implement. |
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| 53 | 53 | | SECTION 3. This Act takes effect September 1, 2023. |
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