Texas Finance Code Title 4, Chapter 345 - Retail Installment Sales

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 345.001 - Definitions
  In this chapter: (1) "Credit card issuer" means a person who issues an identification device, including a card or plate, that is used to obtain...
• Texas Section 345.002 - Goods
  (a) For the purposes of this chapter, goods are tangible personal property, other than property described by Subsection (d), that is: (1) purchased primarily for...
• Texas Section 345.003 - Services
  (a) For the purposes of this chapter, services include work, labor, and other services, other than services described by Subsection (c), that are: (1) purchased...
• Texas Section 345.004 - Cash Price
  (a) The cash price in a retail installment transaction is the price at which the retail seller would have sold to the retail buyer, and...
• Texas Section 345.005 - Itemized Charge
  An amount charged to a retail buyer in a retail installment contract or retail charge agreement is an itemized charge if the amount is not...
• Texas Section 345.006 - Time Price Differential Not Interest
  An amount of time price differential is not interest. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
• Texas Section 345.007 - Applicability Of Chapter
  (a) This chapter applies only to a retail installment transaction. (b) This chapter does not affect or apply to a loan made or the business...
• Texas Section 345.008 - Applicability Of Other Statutes To Retail Installment Transaction
  (a) A loan or interest statute of this state other than Chapter 303 does not apply to a retail installment transaction. (b) Except as provided...

SUBCHAPTER B RETAIL INSTALLMENT CONTRACT

• Texas Section 345.009 - Disclosure Requirements If Conflict With Federal Law
  If a disclosure requirement of this chapter and one of a federal law, including a regulation or an interpretation of law, are inconsistent or conflict,...
• Texas Section 345.051 - Retail Installment Contract General Requirements
  (a) A retail installment contract must be: (1) in writing; (2) dated; (3) signed by the retail buyer; and (4) completed as to all essential...
• Texas Section 345.052 - Contents Of Contract
  (a) A retail installment contract must contain: (1) the name of the retail seller and the name of the retail buyer; (2) the place of...
• Texas Section 345.053 - Disclosure Of Promise To Compensate For Referral
  (a) A written or oral promise of a retail seller to compensate a retail buyer for referring customers or prospective customers to the seller or...
• Texas Section 345.054 - Time Price Differential For Contract
  A retail installment contract may provide for: (1) any amount of time price differential permitted under Section 345.055, 345.056, 345.057, or 345.058; or (2) any...
• Texas Section 345.055 - Time Price Differential For Contract Payable In Equal Monthly Payments
  (a) A retail installment contract that is payable in substantially equal monthly payments beginning one month after the date of the contract may provide for...
• Texas Section 345.056 - Use Of Optional Ceiling
  As an alternative to the maximum rate or amount authorized for a time price differential under Section 345.055 or 345.057, a retail installment contract may...
• Texas Section 345.057 - Time Price Differential For Other Contracts
  A retail installment contract that is payable other than in substantially equal successive monthly payments or the first installment of which is not payable one...
• Texas Section 345.058 - Minimum Time Price Differential For Contract
  Notwithstanding Section 345.055, 345.056, or 345.057: (1) a retail installment contract with an initial principal balance of $75 or more may provide for a minimum...
• Texas Section 345.059 - Principal Balance Computation
  The principal balance of a retail installment contract is computed by: (1) adding the cash price subject to the contract and the total of the...
• Texas Section 345.060 - Charges For Default In Payment Of Installment
  (a) A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment the retail...
• Texas Section 345.061 - Charges For Collecting Debt
  A retail installment contract may provide for the payment of: (1) an attorney's reasonable fees if the contract is referred for collection to an attorney...
• Texas Section 345.062 - Acceleration Of Debt Maturity
  A retail installment contract or retail charge agreement may not authorize the holder to accelerate the maturity of all or a part of the amount...
• Texas Section 345.063 - Requirements For Contract That Is More Than One Document
  (a) A retail installment contract may be more than one document. (b) One of the retail installment contract documents must: (1) provide that it applies...
• Texas Section 345.064 - Completion Of Contract
  (a) A person may not sign a retail installment contract that contains a blank space for an item that is an essential provision of the...
• Texas Section 345.065 - Delivery Of Copy Of Contract
  The retail seller shall: (1) deliver to the retail buyer a copy of the retail installment contract as accepted by the retail seller; or (2)...
• Texas Section 345.066 - Buyer's Right To Rescind Contract
  Until a retail seller complies with Section 345.065, a retail buyer who has not received delivery of the goods or services is entitled to: (1)...
• Texas Section 345.067 - Buyer's Acknowledgment Of Delivery Of Contract Copy
  (a) Any retail buyer's acknowledgment of delivery of a copy of a retail installment contract must: (1) be in at least 10-point type that is...
• Texas Section 345.068 - Bailment Or Lease As Retail Installment Transaction
  A bailment or lease is a retail installment transaction if the bailee or lessee: (1) contracts to pay as compensation for the use of goods...
• Texas Section 345.069 - Deferment Of Installment
  (a) A holder of a retail installment contract, on request of the retail buyer, may agree to defer the scheduled due date of all or...
• Texas Section 345.070 - Amendment Of Contract
  (a) On request of the retail buyer, the holder of a retail installment contract may: (1) amend the contract to renew, restate, or reschedule the...
• Texas Section 345.071 - Confirmation Of Amendment
  An amendment to a retail installment contract must be confirmed in a writing signed by the retail buyer. The holder shall deliver a copy of...
• Texas Section 345.072 - Contract After Amendment
  After amendment a retail installment contract is the original contract and each amendment to the original contract. Acts 1997, 75th Leg., ch. 1008, Sec. 1,...
• Texas Section 345.073 - Prepayment Of Contract
  A retail buyer may prepay the unpaid time balance of a retail installment contract in full at any time before the contract's final due date....
• Texas Section 345.074 - Refund Credit On Prepayment
  If a retail buyer prepays a retail installment contract in full or if the holder demands payment of the unpaid balance of the contract in...
• Texas Section 345.075 - Amount Of Refund Credit For Monthly Installment Contract
  (a) The minimum amount of a refund credit on prepayment of a contract that is payable in substantially equal successive monthly installments beginning one month...
• Texas Section 345.076 - Amount Of Refund Credit For Other Contracts
  The refund credit on a contract to which Section 345.075 does not apply shall be computed in a manner proportionate to the method set out...
• Texas Section 345.077 - Reinstatement Of Contract
  After a demand for payment in full under a retail installment contract, the retail buyer and holder may agree to reinstate the contract and may...
• Texas Section 345.078 - Consolidation Of Contracts
  (a) If a retail buyer purchases goods or services in a retail installment transaction from a retail seller from whom the buyer has previously purchased...
• Texas Section 345.079 - Allocation Of Payments On Consolidation Of Contracts
  (a) If a subsequent purchase is consolidated with a contract and the retail seller retains title or takes a security interest, including a lien, in...
• Texas Section 345.080 - Obligation Under More Than One Contract
  (a) A retail seller may not induce a person or a husband and wife to become obligated at substantially the same time under more than...
• Texas Section 345.081 - Certificate Of Completion Or Satisfaction Of Contract
  (a) A retail seller who has entered into a retail installment transaction under a retail installment contract to perform services or install goods for the...
• Texas Section 345.082 - Statement Of Payments And Amount Due Under Contract
  (a) On written request of a retail buyer, the holder of a retail installment contract shall give or send to the buyer a written statement...

SUBCHAPTER C RETAIL CHARGE AGREEMENT

• Texas Section 345.083 - Receipt For Cash Payment
  A holder of a retail installment contract shall give to the retail buyer a written receipt for each cash payment. Acts 1997, 75th Leg., ch....
• Texas Section 345.101 - Making Retail Charge Agreement
  On the request of a retail buyer or prospective buyer, a retail seller or credit card issuer may establish a retail charge agreement. Acts 1997,...
• Texas Section 345.102 - Agreement General Requirements
  (a) A retail charge agreement must be in writing and signed by the retail buyer. (b) An agreement must contain substantially the following notice printed...
• Texas Section 345.103 - Time Price Differential For Agreement
  (a) Notwithstanding any other law a retail charge agreement may provide for a time price differential for the payment in installments under the agreement. (b)...
• Texas Section 345.104 - Use Of Optional Ceiling
  (a) As an alternative to the maximum rate or amount authorized for a time price differential under Section 345.103, a retail charge agreement may provide...
• Texas Section 345.105 - Charges For Collection Of Payment Of Agreement
  A retail charge agreement may provide for the payment of: (1) an attorney's reasonable fee if the agreement is referred for collection to an attorney...
• Texas Section 345.106 - Processing Fee For Returned Check
  A retail charge agreement may provide that the holder of the agreement may: (1) charge the retail buyer, on return of a dishonored check given...
• Texas Section 345.107 - Prohibited Fees
  An annual, membership, or participation fee may not be charged to or collected from a retail buyer in connection with a retail charge agreement. Acts...
• Texas Section 345.108 - Prohibition On Signing Of Agreement With Blank Spaces
  A retail buyer may not sign a retail charge agreement that contains blank spaces. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1,
• Texas Section 345.109 - Delivery Of Copy Of Agreement
  (a) A retail seller or credit card issuer shall deliver or mail a copy of the executed retail charge agreement to the retail buyer before...
• Texas Section 345.110 - Buyer's Acknowledgment Of Delivery Of Agreement Copy
  (a) Any retail buyer's acknowledgment of delivery of a copy of a retail charge agreement that is contained in the body of the agreement must:...
• Texas Section 345.111 - Statement Of Cash Price
  The cash price in a retail installment transaction under a retail charge agreement shall be stated in a sales slip or other memorandum furnished by...
• Texas Section 345.112 - Agreement Balance Statement
  (a) At the end of each statement period of a retail charge agreement in which an unpaid balance exists, the retail seller shall provide to...

SUBCHAPTER D ALTERNATE FINANCE CHARGE CEILING

• Texas Section 345.113 - Compliance With Federal Law Considered Compliance With Chapter's Disclosure Requirements
  A retail charge agreement that complies with the applicable disclosure provisions of the Consumer Credit Protection Act (15 U.S.C. Section 1601 et seq.) is considered...
• Texas Section 345.155 - Time Price Differential Computation And Amount
  (a) A time price differential authorized under Subchapter C shall be computed using the average daily balance method. (b) If the amount of a time...
• Texas Section 345.156 - When Charging Of Time Price Differential Prohibited
  A time price differential may not be charged for a billing cycle of a retail charge agreement that provides for a time price differential under...
• Texas Section 345.157 - Delinquency Charge
  (a) A retail charge agreement may provide for the payment of: (1) a delinquency charge on each installment that is in default for a period...

SUBCHAPTER E INSURANCE

• Texas Section 345.158 - Retail Charge Agreement To Which Subchapter Does Not Apply
  This subchapter does not apply to a retail charge agreement that: (1) is a home solicitation transaction that is subject to Chapter 601, Business &...
• Texas Section 345.201 - Property Insurance
  (a) A holder may request or require a retail buyer to insure the property purchased or improved under a retail installment transaction, including the purchase...
• Texas Section 345.202 - Credit Life, Credit Health And Accident, And Credit Involuntary Unemployment Insurance
  (a) As additional protection for the contract or agreement, a holder may: (1) request or require a retail buyer to provide credit life insurance and...
• Texas Section 345.203 - Maximum Amount Of Insurance Coverage
  (a) At any time the total amount of the policies of credit life insurance in force on one retail buyer on one retail installment contract...
• Texas Section 345.204 - Insurance Statement
  (a) If insurance is required in connection with a retail installment contract or retail charge agreement, the holder shall give to the retail buyer a...
• Texas Section 345.205 - Insurance May Be Furnished By Buyer
  (a) If insurance is requested or required in connection with a retail installment contract or retail charge agreement and the retail installment contract or retail...
• Texas Section 345.206 - Buyer's Failure To Provide Evidence Of Insurance
  (a) If the retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the...
• Texas Section 345.207 - Charges For Other Insurance Included In Retail Installment Contract
  A retail buyer and retail seller may agree in a retail installment contract to include charges for insurance coverage that is: (1) for risk of...
• Texas Section 345.208 - Requirements For Including Insurance Charge In Contract Or Agreement
  (a) For insurance to be included as an itemized charge in a retail installment contract or a retail charge agreement: (1) the insurance must be...
• Texas Section 345.209 - Delivery Of Insurance Document To Buyer
  A holder who obtains insurance shall, not later than the 45th day after the date of the delivery of goods or the furnishing of services...
• Texas Section 345.210 - Holder's Duty If Insurance Is Adjusted Or Terminated
  (a) If insurance for which a charge is included in or added to a retail installment contract or retail charge agreement is canceled, adjusted, or...
• Texas Section 345.211 - Gain Or Advantage From Insurance Not Additional Charge
  Any gain or advantage to the holder or the holder's employee, officer, director, agent, general agent, affiliate, or associate from insurance or the provision or...
• Texas Section 345.212 - Nonfiling Insurance
  (a) Instead of charging fees for the filing, recording, and releasing of documents for the perfection of a security interest created in connection with a...
• Texas Section 345.213 - Inclusion Of Insurance Premiums
  A retail seller may include any type of insurance premium in the billing of its accounts if: (1) a charge, other than the premium, is...
• Texas Section 345.214 - Adding To Retail Installment Contract Premiums For Insurance Acquired After Transaction
  (a) A retail buyer and holder may agree to add to the unpaid balance of a retail installment contract premiums for insurance policies covering goods...

SUBCHAPTER F SPECIAL FEES AND FINANCE RATES

• Texas Section 345.215 - Effect Of Adding Premium To Contract Or Agreement
  (a) If a premium is added to the unpaid balance of a retail installment contract under Section 345.206 or 345.214, the rate of time price...
• Texas Section 345.251 - Documentary Fee For Certain Vehicles
  (a) A retail seller may charge a documentary fee for services rendered to, for, or on behalf of a retail buyer in handling and processing...
• Texas Section 345.252 - Time Price Differential For Certain Prepaid Funeral Benefits
  Prepaid funeral benefits regulated under Chapter 154 may be financed only at rates authorized by Chapter 303. Acts 1997, 75th Leg., ch. 1008, Sec. 1,...

SUBCHAPTER G ACQUISITION OF CONTRACT, AGREEMENT, OR BALANCE

• Texas Section 345.253 - Time Price Differential For Medical And Dental Services
  Medical or dental services may be financed only at rates authorized by Chapter 303. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1,
• Texas Section 345.301 - Authority To Acquire
  Notwithstanding any other law, a person may acquire a retail installment contract or retail charge agreement or an outstanding balance under a contract or agreement...
• Texas Section 345.302 - Lack Of Notice Does Not Affect Validity As To Certain Creditors
  Notice to a retail buyer of an assignment or negotiation of a retail installment contract or retail charge agreement or an outstanding balance under a...
• Texas Section 345.303 - Payment By Buyer
  Unless a retail buyer has notice of the assignment or negotiation of the buyer's retail installment contract or retail charge agreement or an outstanding balance...

SUBCHAPTER H OTHER PROVISIONS APPLICABLE TO CONTRACTS AND AGREEMENTS

• Texas Section 345.304 - Preservation Of Buyer's Right Of Action Or Defense
  (a) A right of action or defense of a retail buyer arising out of a retail installment transaction is not affected by the negotiation of...
• Texas Section 345.351 - Registration Of Holder
  (a) A holder who is not an authorized lender under Chapter 342 or a credit union shall: (1) register with the Office of Consumer Credit...
• Texas Section 345.352 - Seller's Promise To Pay Or Tender Of Cash To Buyer As Part Of Transaction
  A retail seller may not promise to pay, pay, or otherwise tender cash to a retail buyer as a part of a transaction under this...
• Texas Section 345.353 - Making Of Contract Or Agreement By Mail Or Telephone
  The designation requirement of Section 345.051(b) and the notice requirement of Section 345.052(d) do not apply to a sale under a retail installment contract or...
• Texas Section 345.354 - Prohibition On Power Of Attorney To Confess Judgment And Assignment Of Wages
  A retail installment contract or retail charge agreement may not contain: (1) a power of attorney to confess judgment; or (2) an assignment of wages....
• Texas Section 345.355 - Prohibition On Certain Acts Of Repossession
  A retail installment contract or retail charge agreement may not: (1) authorize the holder or a person acting on the holder's behalf to: (A) enter...
• Texas Section 345.356 - Buyer's Waiver
  (a) A retail installment contract or retail charge agreement may not: (1) provide for a waiver of the retail buyer's rights of action against the...
• Texas Section 345.357 - Prohibition On Certain Liens
  A retail installment contract or retail charge agreement may not provide for a first lien on real property to secure the obligation, other than a...

Last modified: September 28, 2016