TDLR is now accepting online payment for administrative penalties.
Senate Bill 778 (81st Legislature, Regular Session, 2009) added a new chapter to the Occupations Code, Chapter 1306, the Identity Recovery Service Contract Regulatory Act (“Act”). The Act gave authority to TDLR to regulate certain identity recovery service contract providers and administrators. The Act applies to identity recovery service contracts that are sold to consumers at the time of purchase of a motor vehicle where the vehicle and the identity recovery service contract are financed.
Below are a few highlights of the Act:
- Establishes provider and administrator registration requirements, including initial and renewal registration requirements and prescribed fees;
- Requires providers to pay $1 per identity recovery contract sold in the previous calendar quarter as part of their ongoing registration requirements;
- Specifies financial security requirements for providers to ensure the faithful performance of the provider’s obligations to its identity recovery service contract holders;
- Establishes requirements for the appointment and responsibilities of an administrator;
- Establishes provider recordkeeping requirements;
- Specifies the content of the identity recovery service contract forms and disclosures;
- Provides the terms by which a contract is returned, voided, or canceled; and
- Grants the Executive Director of TDLR the authority to conduct investigations and to impose disciplinary actions.
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The Act became effective September 1, 2009, except for the registration requirements and disciplinary action provisions, which became effective January 1, 2010.
In addition to creating new Occupations Code, Chapter 1306, S.B. 778 also amended Finance Code, Chapter 348 to add identity recovery service contracts to the list of items authorized to be included as a separate charge in a motor vehicle retail installment contract. The bill also amended Occupations Code, Chapters 1304 and 2306 to include identity recovery as an authorized item to be included in a service contract or vehicle protection product.