Texas Finance Code
§ 342.457 — AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN
FI § 342.457Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 342. CONSUMER LOANS · Art. J. AUTHORIZED LENDER'S DUTIES AND AUTHORITY
Statute text
View on source(a)An authorized lender may, at the time or after a loan under Subchapter E is made, offer to sell to the borrower and finance in the loan contract 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 lender shall give the borrower written notice at the time the loan is made that the borrower:
(1)is not required to purchase the membership as a condition for approval of the loan; and
(2)is entitled to cancel the transaction and receive a full refund of the purchase price of the membership before the 31st day after the date the loan is made.
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Legislative history
Added by Acts 2005, 79th Leg., Ch. 252 (H.B. 1088), Sec. 2, eff. September 1, 2005.