Bill Text: TX HB2746 | 2023-2024 | 88th Legislature | Enrolled

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

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2023-06-11 - Effective on 9/1/23 [HB2746 Detail]

Download: Texas-2023-HB2746-Enrolled.html

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H.B. No. 2746

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 who has not assigned or transferred the contract shall:
(1) [,] 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 not later than the 30th day after the date the debt
cancellation agreement terminates, 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 holder
described by Subsection (e), shall:
(1) not later than the 60th day after the date the debt
cancellation agreement terminates 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 not later than the 30th day after the date the debt
cancellation agreement terminates, including by electronic means,
to the administrator of the agreement and the retail seller.
(f) The administrator of the agreement or the administrator
of the agreement and the retail seller, as applicable, not later
than the 30th day after receiving the written instructions
specified under Subsection (e)(2) or (e-1)(2), [holder] shall
provide [ensure that] a refund or credit of an amount of a debt
cancellation agreement fee proportional to the amount received by
the administrator and retail seller under the agreement [made by
another person under Subsection (e)(2) is made not later than the
60th day after the date the debt cancellation agreement
terminates].
(g) The administrator of the agreement and the 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. The changes in law made by this Act to Section
354.007, Finance Code, are procedural only and do not require the
refiling of forms to implement.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2746 was passed by the House on May 2,
2023, by the following vote: Yeas 141, Nays 3, 3 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2746 was passed by the Senate on May
16, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor