Texas Finance Code 346.202 – Amounts Authorized to Be Recovered From Customer
(a) A creditor may recover from a customer amounts incurred by the creditor for:
(1) court costs;
(2) attorney’s fees assessed by a court;
(3) a fee authorized by law for filing or recording in a public office a document securing a revolving credit account, including a document releasing a security interest;
(4) a fee for recording a lien on or transferring a certificate of title to a motor vehicle securing a revolving credit account;
(5) a reasonable amount spent for repossessing, storing, preparing for sale, or selling collateral; or
(6) a premium or an identifiable charge received in connection with sale of insurance authorized for a revolving credit account.
(b) With respect to a revolving credit account secured by an interest in real property, a creditor may contract for, charge, and receive additional fees or charges permitted under Section 342.307 as if the revolving credit account were a secondary mortgage loan under Chapter 342.
Terms Used In Texas Finance Code 346.202
- Contract: A legal written agreement that becomes binding when signed.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC