By: Hughes S.B. No. 1052
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to debt cancellation agreements offered in connection with
  certain retail installment contracts and leases for vehicles.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 345, Finance Code, is
  amended by adding Section 345.084 to read as follows:
         Sec. 345.084.  DEBT CANCELLATION AGREEMENT. A debt
  cancellation agreement under Chapter 354 may be offered in
  connection with a retail installment contract for a covered vehicle
  to which this chapter applies.  For purposes of this section,
  "covered vehicle" has the meaning assigned by Section 354.001.
         SECTION 2.  Section 348.124(a), Finance Code, is amended to
  read as follows:
         (a)  In connection with a retail installment transaction
  under this chapter, a retail seller may offer to the retail buyer a
  debt cancellation agreement, including a guaranteed asset
  protection waiver or similarly named agreement. If the retail
  installment transaction requires insurance coverage as part of the
  retail buyer's responsibility to the holder, the debt cancellation
  agreement, guaranteed asset protection waiver, or similarly named
  agreement must be offered under Chapter 354.  The retail seller may
  not require that the purchase of a debt cancellation agreement by
  the retail buyer be made in order to enter into a retail installment
  transaction.
         SECTION 3.  Subchapter G, Chapter 348, Finance Code, is
  redesignated as Chapter 354, Finance Code, and amended to read as
  follows:
  CHAPTER 354 [SUBCHAPTER G].  [CERTAIN] DEBT CANCELLATION
  AGREEMENTS FOR CERTAIN RETAIL VEHICLE INSTALLMENT SALES
         Sec. 354.001.  DEFINITIONS. In this chapter:
               (1)  "Contract" means a retail installment contract
  made under Chapter 345 or 348.
               (2)  "Covered vehicle" includes a self-propelled or
  towed vehicle designed for personal use, including an automobile,
  truck, motorcycle, recreational vehicle, all-terrain vehicle,
  snowmobile, camper, boat, personal watercraft, and personal
  watercraft trailer.
               (3)  "Debt cancellation agreement" means a contract
  term or a contractual arrangement modifying a contract term under
  which a retail seller or holder agrees to cancel all or part of an
  obligation of the retail buyer to repay an extension of credit from
  the retail seller or holder on the occurrence of the total loss or
  theft of the covered vehicle that is the subject of the contract but
  does not include an offer to pay a specified amount on the total
  loss or theft of the covered vehicle.
               (4)  "Holder" means a person who is:
                     (A)  a retail seller; or
                     (B)  the assignee or transferee of a contract.
               (5)  "Retail buyer" means a person who purchases or
  agrees to purchase a covered vehicle from a retail seller in a
  retail installment transaction.
               (6)  "Retail seller" means a person in the business of
  selling covered vehicles to retail buyers in retail installment
  transactions.
         Sec. 354.002 [348.601].  LIMITATION ON CERTAIN DEBT
  CANCELLATION AGREEMENTS. (a)  This chapter [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 chapter [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.
         Sec. 354.003 [348.602].  DEBT CANCELLATION AGREEMENTS
  EXCLUSION LANGUAGE. (a)  In addition to the provisions required by
  Section 354.004 [348.603], a debt cancellation agreement must fully
  disclose all provisions permitting the exclusion of loss or damage
  including, if applicable:
               (1)  an act occurring after the original maturity date
  or date of the holder's acceleration of the [retail installment]
  contract;
               (2)  any dishonest, fraudulent, illegal, or
  intentional act of any authorized driver that directly results in
  the total loss of the covered [motor] vehicle;
               (3)  any act of gross negligence by an authorized
  driver that directly results in the total loss of the covered
  [motor] vehicle;
               (4)  conversion, embezzlement, or concealment by any
  person in lawful possession of the covered [motor] vehicle;
               (5)  lawful confiscation by an authorized public
  official;
               (6)  the operation, use, or maintenance of the covered
  [motor] vehicle in any race or speed contest;
               (7)  war, whether or not declared, invasion,
  insurrection, rebellion, revolution, or an act of terrorism;
               (8)  normal wear and tear, freezing, or mechanical or
  electrical breakdown or failure;
               (9)  use of the covered [motor] vehicle for primarily
  commercial purposes;
               (10)  damage that occurs after the covered [motor]
  vehicle has been repossessed;
               (11)  damage to the covered [motor] vehicle before the
  purchase of the debt cancellation agreement;
               (12)  unpaid insurance premiums and salvage, towing,
  and storage charges relating to the covered [motor] vehicle;
               (13)  damage related to any personal property attached
  to or within the covered [motor] vehicle;
               (14)  damages associated with falsification of
  documents by any person not associated with the retail seller or
  other person canceling the retail buyer's obligation;
               (15)  any unpaid debt resulting from exclusions in the
  retail buyer's primary physical damage coverage not included in the
  debt cancellation agreement;
               (16)  abandonment of the covered [motor] vehicle by the
  retail buyer only if the retail buyer voluntarily discards, leaves
  behind, or otherwise relinquishes possession of the covered [motor]
  vehicle to the extent that the relinquishment shows intent to
  forsake and desert the covered [motor] vehicle so that the covered
  [motor] vehicle may be appropriated by any other person;
               (17)  any amounts deducted from the primary insurance
  carrier's settlement due to prior damages; and
               (18)  any loss occurring outside the United States or
  outside the United States and Canada.
         (b)  An exclusion of loss or damage not listed in Subsection
  (a) may be included in a debt cancellation agreement only if the
  exclusion is disclosed in plain, easy to read language.
         Sec. 354.004 [348.603].  REQUIRED DEBT CANCELLATION
  AGREEMENT LANGUAGE. A debt cancellation agreement must state:
               (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
  [motor] 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
  [motor] 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 [motor]
  vehicle; and
                     (E)  a copy of the damage estimate;
               (7)  that documentation not described by Subdivision
  (6) may be [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 [motor] 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 [motor] 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 [motor] 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 [motor]
  vehicle has not occurred, the retail buyer has 30 days from the date
  of the [retail installment] 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
  [motor] 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."
         Sec. 354.005 [348.604].  APPROVAL OF FORMS FOR DEBT
  CANCELLATION AGREEMENTS. (a)  Debt cancellation agreement forms
  must be submitted to the commissioner for approval.  Debt
  cancellation agreement forms may include additional language to
  supplement the terms of the debt cancellation agreement as required
  by this chapter [subchapter].
         (b)  If a debt cancellation agreement form is provided to the
  commissioner for approval, the commissioner has 45 days to approve
  the form or deny approval of the form.  If after the 45th day the
  commissioner does not deny the form, the form is considered
  approved.
         (c)  If the debt cancellation agreement form is approved by
  the commissioner or considered approved as provided by Subsection
  (b), the terms of the debt cancellation agreement are considered to
  be in compliance with this chapter [subchapter].
         (d)  The commissioner may deny approval of a form only if the
  form excludes the language required by Sections 354.003 [348.602]
  and 354.004 [348.603] or contains any inconsistent or misleading
  provisions.  All form denials may be appealed to the finance
  commission.
         (e)  If after approval of a form the Office of Consumer
  Credit Commissioner discovers that approval could have been denied
  under Subsection (d), the commissioner may order a retail seller,
  any administrator of the debt cancellation agreement, or a holder
  to submit a corrected form for approval.  Beginning as soon as
  reasonably practicable after approval of the corrected form, the
  retail seller, administrator, or holder shall use the corrected
  form for all sales.
         (f)  A debt cancellation agreement form that has been
  approved by the commissioner is public information subject to
  disclosure under Chapter 552, Government Code.  Section 552.110,
  Government Code, does not apply to a form approved under this
  chapter [subchapter].
         Sec. 354.006 [348.605].  ADDITIONAL REQUIREMENTS FOR DEBT
  CANCELLATION AGREEMENTS. (a)  If a retail buyer purchases a debt
  cancellation agreement, the retail seller must provide to the
  retail buyer a true and correct copy of the agreement not later than
  the 10th day after the date of the [retail installment] contract.
         (b)  A holder must comply with the terms of a debt
  cancellation agreement not later than the 60th day after the date of
  receipt of all necessary information required by the holder or
  administrator of the agreement to process the request.
         (c)  A debt cancellation agreement may not knowingly be
  offered by a retail seller if:
               (1)  the [retail installment] contract is already
  protected by gap insurance; or
               (2)  the purchase of the debt cancellation agreement is
  required for the retail buyer to obtain the extension of credit.
         (d)  This section does not apply to a debt cancellation
  agreement offered in connection with the purchase of a commercial
  vehicle.
         (e)  The sale of a debt cancellation agreement must be for a
  single payment.
         (f)  A holder that offers a debt cancellation agreement must
  report the sale of and forward money received on all such agreements
  to any designated party as prescribed in any applicable
  administrative services agreement, contractual liability policy,
  other insurance policy, or other specified program documents.
         (g)  Money received or held by a holder or any administrator
  of a debt cancellation agreement and belonging to an insurance
  company, holder, or administrator under the terms of a written
  agreement must be held by the holder or administrator in a fiduciary
  capacity.
         (h)  A retail seller that negotiates a debt cancellation
  agreement and subsequently assigns the contract shall:
               (1)  maintain documents or data relating to the
  agreement that come into the retail seller's possession; and
               (2)  on request of the Office of Consumer Credit
  Commissioner, cooperate in requesting and obtaining access to
  documents or data relating to the agreement not in the retail
  seller's possession.
         Sec. 354.007 [348.606].  REFUND FOR DEBT CANCELLATION
  AGREEMENTS. (a)  A refund or credit of the debt cancellation
  agreement fee must be based on the earliest date of:
               (1)  the prepayment of the [retail installment]
  contract in full before the original maturity date;
               (2)  a demand by the holder for payment in full of the
  unpaid balance or acceleration;
               (3)  a request by the retail buyer for cancellation of
  the debt cancellation agreement; or
               (4)  the total denial of a debt cancellation request
  based on one of the exclusions listed in Section 354.003 [348.602],
  except in the case of a partial loss of the covered [motor] vehicle.
         (b)  The refund or credit for the debt cancellation agreement
  can be rounded to the nearest whole dollar. A refund or credit is
  not required if the amount of the refund or credit calculated is
  less than $5.
         (c)  If total loss or theft has not occurred, the retail
  buyer may cancel the debt cancellation agreement not later than the
  30th day after the date of the [retail installment] contract or the
  issuance of the debt cancellation agreement, whichever is later, or
  a later date as provided under the debt cancellation agreement. On
  cancellation, the holder or any administrator of the agreement
  shall refund or credit the entire debt cancellation agreement fee.
  A retail buyer may not cancel the debt cancellation agreement and
  subsequently receive any benefits under the agreement.
         (d)  A holder may in good faith rely on a computation by any
  administrator of the agreement of the balance waived, unless the
  holder has knowledge that the computation is not correct. If a
  computation by the administrator of the balance waived is not
  correct, the holder must within a reasonable time of learning that
  the computation is incorrect make the necessary corrections or
  cause the corrections to be made to the retail buyer's account.
  This subsection does not prevent the holder from obtaining
  reimbursement from the administrator or another responsible for the
  debt cancellation agreement or computation.
         (e)  If the debt cancellation agreement terminates due to the
  early termination of the contract, the holder shall, 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 to the appropriate person.
         (f)  The holder shall maintain records of any refund or
  credit of an amount of a debt cancellation agreement fee made under
  Subsection (e) 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 4.  Title 5, Finance Code, is amended by adding
  Chapter 397 to read as follows:
  CHAPTER 397.  DEBT CANCELLATION AGREEMENTS FOR CERTAIN VEHICLE
  LEASES
         Sec. 397.001.  DEFINITIONS. In this chapter:
               (1)  "Covered vehicle" includes a self-propelled or
  towed vehicle designed for personal use, including an automobile,
  truck, motorcycle, recreational vehicle, all-terrain vehicle,
  snowmobile, camper, boat, personal watercraft, and personal
  watercraft trailer.
               (2)  "Debt cancellation agreement" means a lease term
  or a contractual arrangement modifying a lease term under which a
  lessor or holder agrees to cancel all or part of an obligation of
  the lessee to pay the lessor or holder on the occurrence of the
  total loss or theft of the covered vehicle that is the subject of
  the lease but does not include an offer to pay a specified amount on
  the total loss or theft of the covered vehicle.
               (3)  "Holder" means a person who is:
                     (A)  a lessor; or
                     (B)  the assignee or transferee of a lease.
               (4)  "Lease" means a lease for a covered vehicle.
         Sec. 397.002.  APPLICABILITY.  This chapter does not apply
  to a lease that is a retail installment transaction under Section
  345.068 or 348.002.
         Sec. 397.003.  RELATIONSHIP TO INSURANCE.  A debt
  cancellation agreement to which this chapter applies is not
  insurance.
         Sec. 397.004.  LIMITATION ON CERTAIN DEBT CANCELLATION
  AGREEMENTS. (a)  This chapter applies only to a debt cancellation
  agreement, including a gap waiver agreement or other similarly
  named agreement, that includes insurance coverage as part of the
  lessee's responsibility to the holder.
         (b)  The amount charged for a debt cancellation agreement
  made in connection with a lease may not exceed five percent of the
  amount financed pursuant to the lease.
         (c)  The debt cancellation agreement becomes a part of or a
  separate addendum to the lease and remains a term of the lease on
  the assignment, sale, or transfer by the holder.
         Sec. 397.005.  DEBT CANCELLATION AGREEMENTS EXCLUSION
  LANGUAGE. (a)  In addition to the provisions required by Section
  397.006, a debt cancellation agreement must fully disclose all
  provisions permitting the exclusion of loss or damage including, if
  applicable:
               (1)  an act occurring after the original maturity date
  or date of the holder's acceleration of the lease;
               (2)  any dishonest, fraudulent, illegal, or
  intentional act of any authorized driver that directly results in
  the total loss of the covered vehicle;
               (3)  any act of gross negligence by an authorized
  driver that directly results in the total loss of the covered
  vehicle;
               (4)  conversion, embezzlement, or concealment by any
  person in lawful possession of the covered vehicle;
               (5)  lawful confiscation by an authorized public
  official;
               (6)  the operation, use, or maintenance of the covered
  vehicle in any race or speed contest;
               (7)  war, whether or not declared, invasion,
  insurrection, rebellion, revolution, or an act of terrorism;
               (8)  normal wear and tear, freezing, or mechanical or
  electrical breakdown or failure;
               (9)  use of the covered vehicle for primarily
  commercial purposes;
               (10)  damage that occurs after the covered vehicle has
  been repossessed;
               (11)  damage to the covered vehicle before the purchase
  of the debt cancellation agreement;
               (12)  unpaid insurance premiums and salvage, towing,
  and storage charges relating to the covered vehicle;
               (13)  damage related to any personal property attached
  to or within the covered vehicle;
               (14)  damages associated with falsification of
  documents by any person not associated with the lessor or other
  person canceling the lessee's obligation;
               (15)  any unpaid debt resulting from exclusions in the
  lessee's primary physical damage coverage not included in the debt
  cancellation agreement;
               (16)  abandonment of the covered vehicle by the lessee
  only if the lessee voluntarily discards, leaves behind, or
  otherwise relinquishes possession of the covered vehicle to the
  extent that the relinquishment shows intent to forsake and desert
  the covered vehicle so that the covered vehicle may be appropriated
  by any other person;
               (17)  any amounts deducted from the primary insurance
  carrier's settlement due to prior damages; and
               (18)  any loss occurring outside the United States or
  outside the United States and Canada.
         (b)  An exclusion of loss or damage not listed in Subsection
  (a) may be included in a debt cancellation agreement only if the
  exclusion is disclosed in plain, easy to read language.
         Sec. 397.006.  REQUIRED DEBT CANCELLATION AGREEMENT
  LANGUAGE. A debt cancellation agreement must state:
               (1)  the contact information of the lessor, the holder,
  and any administrator of the agreement;
               (2)  the name and address of the lessee;
               (3)  the cost and term of the debt cancellation
  agreement;
               (4)  the procedure the lessee must follow to obtain
  benefits under the terms of the debt cancellation agreement,
  including a telephone number and address where the lessee may
  provide notice under the debt cancellation agreement;
               (5)  the period during which the lessee is required to
  notify the lessor, 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 lessee must
  provide or complete some or all of the following documents and
  provide those documents to the lessor, the holder, or any
  administrator of the agreement:
                     (A)  a debt cancellation request form;
                     (B)  proof of loss and settlement payment from the
  lessee'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 lessee'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) may be required by the lessor, the holder, or any administrator
  of the agreement 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
  lessor, the holder, or any administrator of the agreement may
  inspect the lessee's covered vehicle;
               (9)  that the lessor or holder will cancel all or part
  of the lessee'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 lessee 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 lessee must provide a written
  request to cancel to the lessor, the holder, or any administrator of
  the agreement;
               (14)  that if total loss or theft of the covered vehicle
  has not occurred, the lessee has 30 days from the date of the lease
  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; and
               (15)  that the lessor 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 LEASE IN THE CASE OF A
  TOTAL LOSS OR THEFT OF THE COVERED VEHICLE AS STATED IN THE DEBT
  CANCELLATION AGREEMENT."
         Sec. 397.007.  ADDITIONAL REQUIREMENTS FOR DEBT
  CANCELLATION AGREEMENTS. (a)  If a lessee purchases a debt
  cancellation agreement, the lessor must provide to the lessee a
  true and correct copy of the agreement not later than the 10th day
  after the date of the lease.
         (b)  A holder must comply with the terms of a debt
  cancellation agreement not later than the 60th day after the date of
  receipt of all necessary information required by the holder or
  administrator of the agreement to process the request.
         (c)  A debt cancellation agreement may not knowingly be
  offered by a lessor if:
               (1)  the lease is already protected by gap insurance;
  or
               (2)  the purchase of the debt cancellation agreement is
  required for the lessee to obtain the extension of credit.
         (d)  This section does not apply to a debt cancellation
  agreement offered in connection with the lease of a commercial
  vehicle.
         (e)  The sale of a debt cancellation agreement must be for a
  single payment.
         (f)  A holder that offers a debt cancellation agreement must
  report the sale of and forward money received on all such agreements
  to any designated party as prescribed in any applicable
  administrative services agreement, contractual liability policy,
  other insurance policy, or other specified program documents.
         (g)  Money received or held by a holder or any administrator
  of a debt cancellation agreement and belonging to an insurance
  company, holder, or administrator under the terms of a written
  agreement must be held by the holder or administrator in a fiduciary
  capacity.
         (h)  A lessor that negotiates a debt cancellation agreement
  and subsequently assigns the lease shall maintain documents or data
  relating to the agreement that come into the lessor's possession.
         Sec. 397.008.  REFUND FOR DEBT CANCELLATION AGREEMENTS.
  (a)  A refund or credit of the debt cancellation agreement fee must
  be based on the earliest date of:
               (1)  the prepayment of the lease in full before the
  original maturity date;
               (2)  a demand by the holder for payment in full of the
  unpaid balance or acceleration;
               (3)  a request by the lessee for cancellation of the
  debt cancellation agreement; or
               (4)  the total denial of a debt cancellation request
  based on one of the exclusions listed in Section 397.005, except in
  the case of a partial loss of the covered vehicle.
         (b)  The refund or credit for the debt cancellation agreement
  can be rounded to the nearest whole dollar. A refund or credit is
  not required if the amount of the refund or credit calculated is
  less than $5.
         (c)  If total loss or theft has not occurred, the lessee may
  cancel the debt cancellation agreement not later than the 30th day
  after the date of the lease or the issuance of the debt cancellation
  agreement, whichever is later, or a later date as provided under the
  debt cancellation agreement. On cancellation, the holder or any
  administrator of the agreement shall refund or credit the entire
  debt cancellation agreement fee. A lessee may not cancel the debt
  cancellation agreement and subsequently receive any benefits under
  the agreement.
         (d)  A holder may in good faith rely on a computation by any
  administrator of the agreement of the balance waived, unless the
  holder has knowledge that the computation is not correct. If a
  computation by the administrator of the balance waived is not
  correct, the holder must within a reasonable time of learning that
  the computation is incorrect make the necessary corrections or
  cause the corrections to be made to the lessee's account. This
  subsection does not prevent the holder from obtaining reimbursement
  from the administrator or another responsible for the debt
  cancellation agreement or computation.
         (e)  If the debt cancellation agreement terminates due to the
  early termination of the lease, the holder shall, 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 to the appropriate person.
         (f)  The holder shall maintain records of any refund or
  credit of an amount of a debt cancellation agreement fee made under
  Subsection (e) and provide electronic access to those records until
  the later of the fourth anniversary of the date of the lease or the
  second anniversary of the date of the refund or credit.
         Sec. 397.009.  REMEDY.  If the attorney general reasonably
  believes that a person is violating or is about to violate this
  chapter, the attorney general may bring an action in the name of
  this state against the person to restrain or enjoin the person from
  violating this chapter.
         SECTION 5.  This Act takes effect September 1, 2017.