Service Contract Providers

A Service Contract Provider provides extended warranties to consumers for a specified period of time and for an additional cost beyond the price of the product.

2017 Legislative Update

The 85th Legislative Session made three changes to the SCP statute.

  • Effective September 1, 2017, SCP contracts may offer to replace a motor vehicle key or key-fob if the key or key-fob becomes inoperable or is lost or stolen. See House Bill 2275 for more information.
  • In addition, HB 2275 amended the statute to state that a contract provider is not required to deduct the amount of any claims paid from the amount of a refund requested by a contract holder. This change is also effective September 1, 2017.
  • Senate Bill 1199 allows a SCP contract to a provide compensation to the buyer of a vehicle on the total constructive loss under a “Depreciation benefit optional member program.” A Depreciation benefit optional member program means a service contract financed under Chapter 348 or 353, Finance Code, that pays to the buyer, as a credit toward the purchase of a replacement vehicle at a participating dealer, an amount less than or equal to the difference between the purchase price and the actual cash value for a total constructive loss. There are some important restrictions however.
  • The amended statute will be posted soon.

Military Service Members, Veterans, and Spouses - For more information about obtaining a TDLR license or renewing a TDLR license that expired while serving on active duty, please go to the Military Outreach home page.