Texas Finance Code 348.414 – Automobile Club Membership Offered in Connection With Retail Installment Contract
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(a) A retail seller may, at the time a retail installment contract is executed, offer to sell to the retail buyer an automobile club membership.
(b) The retail seller shall give the retail buyer written notice at the time the retail installment contract is executed that the retail buyer:
(1) is not required to purchase the membership as a condition for approval of the contract; and
(2) is entitled to cancel the membership and receive a full refund of the purchase price of the membership before the 31st day after the date the contract is executed.
Terms Used In Texas Finance Code 348.414
- 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 retail seller shall notify the retail buyer if the membership includes services that are provided by the manufacturer as part of the motor vehicle purchase.
(d) The amount charged for a membership as authorized by Subsection (a) must be reasonable.