Tex.
Fin. Code Section 354.004
Required Debt Cancellation Agreement Language
(1)
the contact information of the retail seller, the holder, and any administrator of the agreement;(2)
the name and address of the retail buyer;(3)
the cost and term of the debt cancellation agreement;(4)
the procedure the retail buyer must follow to obtain benefits under the terms of the debt cancellation agreement, including a telephone number and address where the retail buyer may provide notice under the debt cancellation agreement;(5)
the period during which the retail buyer is required to notify the retail seller, the holder, or any administrator of the agreement of any potential loss under the debt cancellation agreement for total loss or theft of the covered vehicle;(6)
that in order to make a claim, the retail buyer must provide or complete some or all of the following documents and provide those documents to the retail seller, the holder, or any administrator of the agreement:(A)
a debt cancellation request form;(B)
proof of loss and settlement payment from the retail buyer’s primary comprehensive, collision, or uninsured or underinsured motorist policy or other parties’ liability insurance policy for the settlement of the insured total loss of the covered vehicle;(C)
verification of the retail buyer’s primary insurance deductible;(D)
a copy of any police report filed in connection with the total loss or theft of the covered vehicle; and(E)
a copy of the damage estimate;(7)
that documentation not described by Subdivision (6) or required by the retail seller, the holder, or any administrator of the agreement is not required to substantiate the loss or determine the amount of debt to be canceled;(8)
that notwithstanding the collection of the documents under Subdivision (6), on reasonable advance notice the retail seller, the holder, or any administrator of the agreement may inspect the retail buyer’s covered vehicle;(9)
that the retail seller or holder will cancel all or part of the retail buyer’s obligation as provided in the debt cancellation agreement on the occurrence of total loss or theft of the covered vehicle;(10)
the method to be used to calculate refunds;(11)
the method for calculating the amount to be canceled under the debt cancellation agreement on the occurrence of total loss or theft of a covered vehicle;(12)
that purchase of a debt cancellation agreement is not required for the retail buyer to obtain an extension of credit and will not be a factor in the credit approval process;(13)
that in order to cancel the debt cancellation agreement and receive a refund, the retail buyer must provide a written request to cancel to the retail seller, the holder, or any administrator of the agreement;(14)
that if total loss or theft of the covered vehicle has not occurred, the retail buyer has 30 days from the date of the contract or the issuance of the debt cancellation agreement, whichever is later, or a longer period as provided under the debt cancellation agreement, to cancel the debt cancellation agreement and receive a full refund;(15)
that the retail buyer may file a complaint with the commissioner, and include the address, phone number, and Internet website of the Office of Consumer Credit Commissioner; and(16)
that the holder will cancel certain amounts under the debt cancellation agreement for total loss or theft of a covered vehicle, in the following or substantially similar language: “YOU WILL CANCEL CERTAIN AMOUNTS I OWE UNDER THIS CONTRACT IN THE CASE OF A TOTAL LOSS OR THEFT OF THE COVERED VEHICLE AS STATED IN THE DEBT CANCELLATION AGREEMENT.”
Source:
Section 354.004 — Required Debt Cancellation Agreement Language, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.354.htm#354.004 (accessed Jun. 5, 2024).
