States require liability insurance for vehicles. Debt relief is not insurance. Customers must take out liability insurance with an insurance company for the vehicle. Liability insurance is affordable. For further questions about debt relief contracts, please contact debtcancellationforms@occc.texas.gov. The submission process consists of two steps. First, email a completed copy of the submission form (see below) and a “clean” version of the Abode Acrobat DCA document (pdf) to DebtCancellationForms@occc.texas.gov. Second, send the completed submission form with your cheque for the $250 non-refundable deposit fee and, if you wish, a copy of the debt relief agreement to: Before submitting the agreement, we recommend that you read the OCCC Consultation Bulletin “Review of Debt Relief Agreements That Require Insurance.” If the debt relief agreement does not specify that the retail investor must take out insurance, the debt relief agreement will be rejected. Debt relief agreements may vary by state and jurisdiction. For example, the Texas State Office of Credit Commissioner (OCCC) establishes contractual requirements for debt relief agreements that are passed on to consumers by auto agencies. Among the most interesting requirements is the fact that the buyer maintains property insurance for the vehicle while it is in its possession. As a general rule, DCAs are considered an alternative to insurance.

However, the insurance obligation concerns the depreciation of the automobile. A product in which debt is suspended for a certain period of time due to extenuating circumstances is called a Debt Suspension Agreement (ODA). In DPAs, debt payments are not cancelled and resumed after the existence of extenuating circumstances. Both products are under the control and supervision of the Office of the Comptroller of the Currency (OCC). Banks and other financial institutions offer debt relief contracts instead of credit insurance. Credit insurance is a type of insurance policy taken out by a borrower who pays one or more existing debts in the event of death, disability or, in rare cases, unemployment. CDC acts as credit insurance, but can also be written to cover life events of the borrower`s spouse or other household members. This feature of the product recognizes that in many households, different family members contribute to total household income. Is debt relief the solution for all vehicles? No, the debt waiver waives the customer in case of total loss or theft and does not cover partial losses such as wing beads. Debt cancellation agreements may not be the right product for vehicles that are financed with higher real cash values over the long term. A debt cancellation contract (DCA) is an agreement under which the holder of an instalment retail contract cancels a certain amount due on the contract if the vehicle is stolen or summarized.

Some TCA require the retail purchaser to maintain insurance for the vehicle. A LOAC that requires a retail buyer to maintain insurance must be submitted to our agency for review. The SCCC has 45 days to approve or reject this type of DCA form after it has been submitted to the agency. As of May 5, 2016, there will be a non-refundable deposit fee of $250 for each TCA. A debt forgiveness agreement (DCC) is a contractual arrangement that changes the terms of the loan. Under the debt relief agreement, a bank undertakes to cancel a customer`s obligation to repay a loan or credit in whole or in part. These contracts come into effect with the occurrence of a particular event, as stated in the contract, and most people associate them with credit card debt. CDC offers borrowers a flexible way to protect themselves from a variety of events that can affect their ability to pay off their debt. They also allow borrowers to buy only the protection they need because of their financial situation and the amount of outstanding debt. Therefore, Debt Relief Agreements (DCAs) and Debt Suspension Agreements (DSAs) are often a more appropriate form of debt protection for borrowers than credit insurance.

AVP has a variety of clients across the country that use debt relief agreements. With this experience, we can help you decide if debt relief works for you. Contact us and we will provide you with the pro forma and necessary information so that you can decide if debt relief agreements work for you. The submission will not be considered complete until the non-refundable application fee and debt relief agreement have been received by our agency. *NOTE: On July 1, 2017, the OCC will begin accepting TCA deposits for retail instalment transactions for Chapter 345 vehicles (motorcycles, recreational vehicles, recreational vehicles, off-road vehicles, snowmobiles, recreational vehicles, boats, boats and boat trailers). Retail sellers cannot offer CDIs for these Chapter 345 vehicles before September 1, 2017. Before selling a LOAC, a retail vendor must ensure that the LOAC has been approved by the OCCC. Chapter 345 DCAs are subject to the same submission process as outlined below. Debt cancellation contracts are available for consumer loans, including installment loans, auto loans, mortgages, home equity lines of credit (HELOCs), and leasing.

The borrower pays a fee to a creditor who receives the protection granted. Bundesbank regulators, federal courts, and most states recognize CDC as banking products because they lack the attributes of insurance. CCDs are available from federal and state custodians and non-custodial creditors. CDCs are subject to comprehensive regulation by federal and state banking supervisors. CDCs can occur either with the underlying lending activity or after the closing or establishment of a loan or line of credit. Debt relief is not insurance, it is a modification of the instalment retail contract where the customer pays a fee to the dealer or financial company and in return, the dealer or financial company waives the customer`s debts minus a small deductible (according to state law) if the vehicle is totally lost or stolen and not recovered. Debt relief is based on the amount financed, not on the creditworthiness of the customer. In almost all cases, it is cheaper than property damage insurance. Debt relief agreements can be added to the retail remittance contract to be part of the customer`s payment and reduce the customer`s overall expenses related to vehicle ownership. The lender benefits because there is no need for insurance follow-up and the claim process is very simple. The transfer of risks associated with credit insurance requires the regulation of the product as insurance. This regulation protects the bank in the event of insolvency.

However, the same protection is not available with a debt relief product. In the case of a CCC, the creditor retains all risks of cancellation or suspension of payment. In addition, CDCs do not sell through insurance agents, brokers, or other intermediaries. They are a feature of the loan extension provided by a lender that the customer can cancel at any time. Banks and auto agencies offer debt forgiveness agreements instead of insurance for a fee and a deductible. Most self-funded customers want property damage insurance. Many cannot afford property damage insurance because their creditworthiness is used in the calculation of the insurance premium, which often results in expensive insurance costs. Customers can afford payment for the vehicle or payment for insurance, but not often both. The customer needs his vehicle for transportation, so the payment of the vehicle is made first, the insurance is paid when the funds are available. Abandoned insurance notices are then sent to the financial company, which contacts the customer to reinstate the insurance or enforce the insurance.

The insurance is abandoned again after a period of non-payment, and then the notification process begins again, creating a vicious circle. A Debt Cancellation Agreement (CDA) provides for the cancellation of loan payments when it becomes difficult or impossible for the borrower to make payments. These events may include an accident or loss of life, health or income. Other reasons for debt relief include military service, marriage and divorce. Please copy and paste this integration script to where you want to embed submission forms (select 1): Debt Cancellation Submission Form (Word) Debt Cancellation Submission Form (PDF) Please fill out this form, we will try to respond as soon as possible. .