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.


TDLR Proposes Administrative Rules

The Texas Department of Licensing and Regulation (Department) proposes an amendment to an existing rule of the Service Contract Providers program rules (16 Texas Administrative Code, Chapter 77, §77.42 and the repeal of §77.44). The proposed amendment allows service contract providers, who are automobile dealers offering service contracts on vehicles that they sell, to reduce the financial security deposit depending on the provider's annual gross revenue in this state from the sale of service contracts during the preceding year. Additionally, the proposed rules repeal a portion of the existing rules which is outdated and no longer relevant.

The proposed rules were published in the August 30, 2019, issue of the Texas Register (44 TexReg 4615). The Department will accept comments on the proposal until September 29, 2019.

The Department encourages anyone interested in the Service Contract Providers and Administrators program to review the rule proposal. Comments may be submitted by email to erule.comments@tdlr.texas.gov.


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