(a) Definitions. For purposes of this section, the following terms will have the following meanings:

(1) Holder--A holder with the legal authority to release the security interest, or the holder's designee who has the legal authority to release the security interest.

(2) Calendar days--Every day of the week with the exclusion of legal public holidays as defined by 5 U.S.C. §6103.

(b) Payoff statement. On the written request of the retail buyer or the buyer's designee, a holder must give a payoff statement to the person making the request within a reasonable time.

(c) Statement of payments. On the written request of the retail buyer or the retail buyer's designee, a holder must give a statement of the dates and amounts of payments and the total amount unpaid under the contract to the person making the request within a reasonable time.

(d) Delinquent accounts. A holder must give the information required by this section even if at the time the inquiry is made the account is delinquent.

(e) Requesting statement. A holder may designate a location where the person requesting a payoff statement or statement of payments may submit a request for the statement. The designation may include a mailing address, physical address, telephone number, website address, email address, or another point of contact reasonably accessible to the retail buyer or buyer's designee. A mailing address and telephone number are presumed to be reasonably accessible. A website address or email address is presumed to be reasonably accessible, unless the retail buyer objects in writing. If the holder does not designate a location where the retail buyer or buyer's designee may request a payoff statement or statement of payments, the retail buyer or buyer's designee may submit the written request using the contact information included in the most recent communication from the holder related to payments or the contact information for that holder shown in the retail installment sales contract. If the holder has not provided contact information in either manner described by the preceding sentences, the retail buyer or buyer's designee may submit the request to any physical address or mailing address of the holder.

(f) Verification of retail buyer. The holder may require the retail buyer to provide certain specified information (full name of the retail buyer, social security number, account number, unique password given to the retail buyer) to verify the requester's identity before giving the payoff statement or statement of payments.

(g) Content of payoff statement. The payoff statement must, at a minimum, contain the following information:

(1) the name of the holder;

(2) the address of the holder for use in connection with the payoff statement;

(3) the telephone number of the holder for use in connection with the payoff statement;

(4) the account number or other identifying number of the retail buyer, if applicable;

(5) the date of the payoff statement;

(6) the amount necessary to payoff the account as of the stated date of the payoff statement. If the amount is subject to change after the stated date, the creditor must indicate that fact. The payoff statement may also include a description of the daily accrual of finance charges and known and identified subsequent events;

(7) a statement that specifies how and where to tender the payoff amount to the holder; and

(8) the last date upon which the payoff terms will be honored as specified by subsection (k) of this section.

(h) Delivery of payoff statement or statement of payments. The holder may give the payoff statement or statement of payments to the retail buyer or buyer's designee over the telephone or by mail, email, website address, or other means. If requested by the retail buyer or buyer's designee, the payoff statement or statement of payments must be given in writing. A payoff statement or statement of payments given by email or by website address from which the statement may be printed satisfies the writing requirement of this subsection.

(i) Cost of payoff statement or statement of payments. The retail buyer or buyer's designee is entitled to one written payoff statement or written statement of payments free of charge during a six-month period. The charge for each additional written payoff statement or written statement of payments may not exceed $1.00. A holder may not charge a fee for a payoff statement or statement of payments unless the holder gives the statement in writing.

(j) Reasonable time period. In the case of a motor vehicle retail installment sales contract made under Texas Finance Code, Chapter 348, a presumptively reasonable time in which to give a payoff statement or statement of payments is:

(1) for accounts in litigation, bankruptcy, or repossession status, five (5) calendar days, excluding legal public holidays as defined by 5 U.S.C. §6103; or

(2) for all other accounts not meeting the requirements of paragraph (1) of this subsection, two (2) business days.

(3) The reasonable time period in which to give the payoff statement or statement of payments does not begin to run unless the retail buyer or buyer's designee provides the holder the information necessary for the holder to determine the proper account and verify the requester's identity.

(4) The holder's response is timely if placed in first-class U.S. mail, given by facsimile or email, or otherwise transmitted within the reasonable time period.

(5) The reasonable time periods defined by this subsection are presumed to be reasonable and may only be rebutted by a showing of good cause.

(k) Payoff statement binding. Pursuant to Texas Finance Code, §348.408, a holder who gives the retail buyer or the buyer's designee outstanding balance information in a payoff statement is bound by that information and must honor that information for a reasonable time.

(1) If the holder gives the payoff statement to the retail buyer or buyer's designee by hand-delivery, facsimile, email, or website, a reasonable time is 10 calendar days from the date the payoff statement is given.

(2) If the holder gives the payoff statement to the retail buyer or buyer's designee by first-class mail, registered or certified mail, or any other delivery method not specified by paragraph (1) of this subsection, a reasonable time is 15 calendar days from the date the payoff statement is given.

Source Note: The provisions of this §84.501 adopted to be effective July 10, 2008, 33 TexReg 5281