Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 84 - MOTOR VEHICLE INSTALLMENT SALES › Subchapter C - INSURANCE AND DEBT CANCELLATION AGREEMENTS › Section 84.309 - Debt Cancellation Agreements Requiring Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose and scope. This section applies
				  to a debt cancellation agreement described by Texas Finance Code, Chapter 354,
				  that includes insurance coverage as part of the retail buyer's responsibility
				  to the holder. Debt cancellation agreements must be submitted to the OCCC for
				  approval, as provided by Texas Finance Code, §
										RSA
				  354.005(a). The denial of a
				  debt cancellation agreement may be appealed in a contested case, as provided by
				  Texas Finance Code, §
										RSA
				  354.005(d). This section
				  describes the requirements for submitting a debt cancellation agreement to the
				  OCCC and the requirements for appealing the denial of a debt cancellation
				  agreement.
(b) Submission. A debt
				  cancellation agreement must be submitted in accordance with the OCCC's
				  instructions. A submission is not effective until the agreement is submitted in
				  accordance with the OCCC's instructions, including the fee required under
				  subsection (c).
(c) Fee. The person
				  submitting a debt cancellation agreement must pay a $250 nonrefundable fee to
				  the OCCC for each submitted agreement.
(d) OCCC's notice of approval or denial. No
				  later than the 45th day after the OCCC receives a debt cancellation agreement
				  submission, the OCCC will send a notice of approval or a notice of denial to
				  the person who submitted the agreement, as provided by Texas Finance Code,
				  § 354.005(b). On the written request of the person who submitted the
				  agreement, the OCCC may agree in writing to extend the approval period for an
				  additional 45 days. The date of approval or denial is the date on which the
				  OCCC sends the notice of approval or denial. The OCCC may deny approval of a
				  debt cancellation agreement if the agreement excludes language required by
				  Texas Finance Code, § 354.003 and § 354.004, or if it contains any
				  inconsistent or misleading provisions.
(e) Appellant's notice of appeal. A person
				  who submits a debt cancellation agreement and receives a notice of denial from
				  the OCCC may appeal the denial by serving a notice of appeal on the OCCC. The
				  appellant must serve the notice of appeal no later than the 30th calendar day
				  after the date of denial. If a notice of appeal is not served in accordance
				  with this subsection, then the denial becomes final and cannot be
				  appealed.
(f) Contested case. If a
				  person appeals the denial of a debt cancellation agreement under subsection
				  (e), then the appeal will be a contested case under the Administrative
				  Procedure Act, Texas Government Code, Chapter 2001, and the rules of procedure
				  applicable under §
										RSA
				  9.1(a) of this title
				  (relating to Application, Construction, and Definitions). The burden of proof
				  is on the appellant to show that the agreement should have been approved under
				  Texas Finance Code, § 354.005.
(g) Proposal for decision. In connection with
				  a contested case under this section, the administrative law judge will issue a
				  proposal for decision to the commissioner. The proposal for decision will
				  include a recommendation regarding whether the OCCC's denial of the agreement
				  should be affirmed or reversed. The proposal for decision may include a
				  recommendation that costs be assigned to a party, to the extent authorized by
				  law.
(h) Final order. The
				  commissioner will issue a final order after review of the administrative law
				  judge's proposal for decision. The final order will include a statement of
				  whether the OCCC's denial of the agreement is affirmed or reversed. The final
				  order may include an assignment of costs to a party, to the extent authorized
				  by law.
(i) Judicial review of
				  final order. A final order under subsection (h) of this section may be appealed
				  to a Travis County district court, as provided by Texas Government Code, §
										RSA
				  2001.176.