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Tex. Fin. Code § 303.203

AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN

Added by Acts 2005, 79th Leg., Ch. 252 (H.B. 1088), Sec. 1, eff

(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.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.