(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. § 348.124(c) does not apply to a debt cancellation agreement regulated under this chapter.

Terms Used In Texas Finance Code 354.002

  • Contract: A legal written agreement that becomes binding when signed.

(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.

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