Relating to fees charged in conjunction with free trials, the cancellation of recurring charges, and making penalties applicable

1301, as a consumer credit sale or consumer loan, a refinancing or consolidation thereof, a consumer lease, or a consumer rental purchase agreement.102, as a bank, savings institution, trust company, credit union, or similar institution that is organized or chartered under the laws of a state or of the United States.1301, as a person who makes a loan or takes an assignment of a right to payment. Pursuant to the bill, a consumer may cancel a recurring payment to a third-party vendor of goods or services made on the consumer’s behalf by a lender pursuant to a consumer credit transaction; a depository institution pursuant to an account debit arrangement; or a provider of financial services that may make such payments pursuant to any agreement with the consumer. The bill also requires a lender, depository institution, or provider of financial services that makes a payment to a third party on behalf of a consumer to implement a procedure for the immediate cancellation of such payments upon the receipt of a request from the consumer. The bill provides that nothing in the new Code chapter affects a preexisting lawful installment contract or a contract between a consumer and a lender who loaned money to the consumer for the purchase of goods or services. Current law provides it is an unlawful practice for a person to cause a consumer to incur a financial obligation as a result of accepting a free offer unless either the person obtains the consumer’s billing information directly from the consumer, or the consumer gives affirmative consent at the time the consumer accepts a free offer for the person to provide billing information to a person other than the person making the free offer. The bill modifies this provision by providing it is an unlawful practice for a person to cause a consumer to incur a charge or other financial obligation as a result of accepting a free offer unless, after the completion of delivery of goods or services pursuant to the free offer, and before any charge or other financial obligation is incurred, the consumer consents to the charge or financial obligation. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation.