Texas Finance Code

§ 303.203 — AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN

FI § 303.203Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 303. OPTIONAL RATE CEILINGS · Art. C. PROVISIONS APPLICABLE TO CERTAIN CONSUMER LOANS AND SECONDARY MORTGAGE LOANS

Statute text

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(a)A lender may, at the time or after a loan is made, offer to sell to the borrower and finance in a loan contract subject to this subtitle a charge for an automobile club membership.

(b)The lender may not require the purchase of the membership authorized under Subsection (a) as a condition for approval of the loan.

(c)The borrower shall provide the lender with written acknowledgment of the borrower's intent to purchase the membership.

(d)The amount charged for a membership as authorized by Subsection (a) must be reasonable. Added by Acts 2005, 79th Leg., Ch. 252 (H.B. 1088), Sec. 1, eff. September 1, 2005. Amended by:

Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 1182 (H.B. 3453), Sec. 4, eff. September 1, 2011.