Texas § FI.342.457 - AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN
Full text of Texas The Texas Constitution § FI.342.457 — AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN, with citation guidance and answers to common questions.
§ FI.342.457. AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN
AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN. (a) An authorized lender may, at the time or after a loan under Subchapter E is made, offer to sell to the borrower and finance in the loan contract 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 lender shall give the borrower written notice at the time the loan is made that the borrower: (1) is not required to purchase the membership as a condition for approval of the loan; and (2) is entitled to cancel the transaction and receive a full refund of the purchase price of the membership before the 31st day after the date the loan is made. (e) The commissioner shall: (1) adopt a rule providing for disclosure in Spanish of the information required by Subsection (d); and (2) establish a form for the disclosure of the information required by Subsection (d) that conforms to the plain language and readability requirements applicable to loan contracts under Section 341.502 . (f) 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. 2, eff. September 1, 2005. SUBCHAPTER K. LIMITATIONS ON AUTHORIZED LENDER
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § FI.342.457
What does The Texas Constitution § FI.342.457 cover?
Section FI.342.457 ("AUTOMOBILE CLUB MEMBERSHIP OFFERED IN CONNECTION WITH A LOAN") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § FI.342.457?
A common citation format is "The Texas Constitution § FI.342.457" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § FI.342.457 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.