It is probably in your best interest that your debt cancellation contract be written down and verified by a lawyer before signing something. To ensure that the document is legally binding, it must contain certain information (such as information that establishes a valid contract). The transmission process involves two steps. First send a copy of the submission form (below) and a «clean» version of the DCA document by email to DebtCancellationForms@occc.texas.gov. Second, send the bid form completed with your cheque for the $250 non-refundable deposit fee and, if you wish, a copy of the debt cancellation contract: for any additional questions regarding debt relief contracts, please contact firstname.lastname@example.org. Before signing the agreement, we advise you to read the OCCC`s consultation bulletin: «Review debt relief contracts that require insurance.» If the debt cancellation contract does not provide that the retail investor must have insurance, the debt relief contract is rejected. Debt cancellation is not insurance, it is a change in the individual`s temperamental contract, in which the customer pays a tax to the merchant or financial company and, in return, the merchant or financial company waives the reduced customer debt of a small deductible (in accordance with national law) when the vehicle is a total or stolen loss and is not recovered. Debt cancellation is based on the amount financed and not on the credit score of the debitor. In almost all cases, it is cheaper than property damage insurance. Debt relief contracts can be included in each person`s contract to be part of the customer`s payment and to reduce the total cost of owning a vehicle. The lender benefits from the fact that it is not necessary to follow the insurance and that the application procedure is very simple.
There are several reasons why a lender may be convinced to accept debt cancellation. Generally speaking, the lender must have a good reason to cancel or cancel the remaining debt. This may include death, obstruction, bankruptcy or destruction of security. But these circumstances also do not guarantee that a lender will accept the cancellation of the debt. Banks and other financial institutions offer credit withdrawal contracts instead of a credit insurance plan. Credit insurance is a type of insurance acquired by a borrower that pays off one or more existing debts in the event of death, disability or, in rare cases, unemployment. DCs act as credit insurance, but can also be written to cover the life events of the borrower`s spouse or other members of the household. This product function recognizes that, in many households, different family members contribute to the overall household income. The agreement should also be signed and dated by all parties. Depending on your status, you may need to have the document certified from a notarized point of view.