Texas Finance Code 303.203 – Automobile Club Membership Offered in Connection With a Loan
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(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.
Terms Used In Texas Finance Code 303.203
- Contract: A legal written agreement that becomes binding when signed.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(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.