HB 2639 on debt cancellation coverage set on Texas House Calendar

With tonight's important midnight deadline approaching in the House of Representatives, HB 2639 by Rep. Dan Flynn (R-Van) has been set on the calendar for floor debate today. The bill clarifies that the administrator is responsible for ensuring that a refund is issued in a timely manner to a buyer of a debt cancellation agreement who cancels the agreement early.

This applies to a situation that can occur in indirect auto lending when a financial institution purchases a loan from the retail seller of a vehicle that includes a debt cancellation agreement. HB 2639 was amended in the Pensions, Investments, and Financial Services Committee requiring the holder to give notice to the administrator if the holder finds that the borrower may be entitled to a refund of fees relating to the debt cancellation contract.

The Texas Credit Union Association is actively supporting the bill.

The House has worked well into the night every day this week passing a lot of House bills, but many bills have also been going down on points of order. With the midnight deadline looming, it's a race against the clock. More than 200 bills have been set on the calendar for possible consideration before tonight's deadline for all House bills to have received a second reading. Each point of order raised against a bill and every amendment debated chips away at the clock, potentially endangering the other bills left on the calendar for consideration. Thousands of bills will likely never make it to the floor this session.

Contact Jeff Huffman with the Texas Credit Union Association at 469-385-6488 or jhuffman@txcua.coop for more information.