Sec. 303.203. AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN. (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:
Acts 2011, 82nd Leg., R.S., Ch. 1182 (H.B. 3453), Sec. 4, eff. September 1, 2011.
Last modified: September 28, 2016