A bill, H.B. 2459, that would cap the amount that can be charged for debt cancellation contracts (DCCs) was introduced in the Texas legislature by democratic Rep. Senfronia Thomas from Houston. The bill has been sent to the Investments and Financial Services Committee for review.
Specifically, the bill states that "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."
ABIA is currently working on this issue.
Learn more about H.B. 2459.