A consumer suffered $75,000 in damages due to a license holder's fraudulent conduct. The consumer obtained a court judgment against the license holder but could not collect because the license holder had no assets. The consumer then applies to the Recovery Trust Account. Under TRELA, what is the maximum the consumer can receive?
Correct Answer
B) Up to $50,000 because the Recovery Trust Account is capped at $50,000 per transaction
Under Texas Occupations Code §1101.606, the Recovery Trust Account limits payments to $50,000 per transaction, regardless of the actual judgment amount. Although the consumer suffered $75,000 in damages, the Trust Account cap means only $50,000 can be recovered from this source.
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