Texas Finance Code

§ 348.114 — CHARGES FOR DEFERRING INSTALLMENT

FI § 348.114Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 348. MOTOR VEHICLE INSTALLMENT SALES · Art. B. RETAIL INSTALLMENT CONTRACT

Statute text

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(a)If a retail installment contract that provides for a time price differential that is computed using the add-on method or the scheduled installment earnings method is amended to defer all or a part of one or more installments for not longer than three months, the holder may collect from the retail buyer:

(1)a deferment charge in an amount computed on the amount deferred for the period of deferment at a rate that does not exceed the effective return for time price differential permitted for a monthly payment retail installment contract; and

(2)the amount of the additional cost to the holder for:

(A)premiums for continuing in force any insurance coverages provided for by the contract; and

(B)any additional necessary official fees.

(b)The minimum charge under Subsection (a)(1) is $1.

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Legislative history

Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 3, eff. September 1, 2017.