Tex. Finance Code § 354.002
LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS
Texas · Texas Finance Code · Status: effective
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- Citation
- Tex. Finance Code § 354.002, LIMITATION ON CERTAIN DEBT CANCELLATION AGREEMENTS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/647829
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Full text
(a) This chapter 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 contract may not exceed five percent of the amount financed pursuant to the contract. Section 348.124(c) does not apply to a debt cancellation agreement regulated under this chapter.
(c) The debt cancellation agreement becomes a part of or a separate addendum to the contract and remains a term of the contract on the assignment, sale, or transfer by the holder.
(d) A debt cancellation agreement to which this chapter applies is not insurance.