Sec. 348.601. LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS. (a) This subchapter applies only to a debt cancellation agreement that includes insurance coverage as part of the retail buyer's responsibility to the holder.
(b) The amount charged for a debt cancellation agreement made in connection with a retail installment contract may not exceed five percent of the amount financed pursuant to the retail installment contract. Section 348.124(c) does not apply to a debt cancellation agreement regulated under this subchapter.
(c) The debt cancellation agreement becomes a part of or a separate addendum to the retail installment contract and remains a term of the retail installment contract on the assignment, sale, or transfer by the holder.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1034 (H.B. 2931), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 354 (H.B. 2459), Sec. 1, eff. September 1, 2013.
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