Bill Text: TX SB2228 | 2023-2024 | 88th Legislature | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-22 - Referred to Business & Commerce [SB2228 Detail]

Download: Texas-2023-SB2228-Introduced.html

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By: Menéndez S.B. No. 2228

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 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 or retail seller, as
appropriate.
(f) The administrator of the agreement or retail seller,
only after receiving the written instructions specified under
Subsection (e)(2) or (e-1)(2), [holder] shall ensure that a refund
or credit of an appropriate amount of a debt cancellation agreement
fee [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 or retail seller that
effectuated the refund [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.