Auto Debt Cancellation Agreement

A debt cancellation agreement (CCD) 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 loss of income. Other reasons for debt cancellation are military service, marriage and divorce. Debt cancellation is not insurance, it is an amendment to the tempering contract for individuals, in which the customer pays a tax to the dealer or financial company and, in return, the dealer or financial company waives the reduced customer debts of a small deductible (according to state 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 added to the individuals` 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 there is no need to follow the insurance and that the application process is very simple. Bond contracts are available for consumer loans, including installment loans, auto loans, mortgages, home loan lines (HELOC) and leasing contracts.

The borrower pays a royalty to a creditor who receives the protection granted. Banking supervision, federal courts and most states recognize DCs as banking products because they do not have the attributes of insurance. DCCs are available from federally and nationally chartered child care agencies, as well as from non-depository creditors. DCCs are subject to comprehensive regulation by federal authorities and the federal states. DCs may come either from the underlying credit transaction or after a loan or line of credit has been completed or put in place. 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, you 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: a product that suspends liability for a specified period of time due to mitigating circumstances is called the Debt Suspension Agreement (DSA).

In DSAs, the payment of the debt is not cancelled and resumes at the end of the mitigating circumstances. Both products are controlled and supervised by the Office of the Comptroller of the Currency (OCC).