Tex. Fin. Code 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 that is longer than 21 days;

(2)

an attorney’s reasonable fee if the agreement is referred for collection to an attorney who is not a salaried employee of the holder; and

(3)

court costs and disbursements.

(b)

The amount of a delinquency charge may not exceed $15.

(c)

Only one delinquency charge may be collected on an installment regardless of the duration of the default.

(d)

The holder shall remit 50 cents of each delinquency charge in excess of $10 collected under this section to the comptroller, in the time and manner established by the comptroller, for deposit to the credit of an account in the general revenue fund. One-half of the money in the account may be appropriated only to finance research conducted by the commissioner under Section 11.305 (Research) and the other one-half of the money in the account may be appropriated only to finance educational activities and counseling services under Section 394.001 (Duties of Commissioner).

(e)

A customer’s monthly statement must contain the following notice printed or typed in at least 10-point type that is boldfaced, capitalized, underlined, or otherwise conspicuously set out from the surrounding written material: “A DELINQUENCY CHARGE OF $15 MAY BE ASSESSED FOR A PAYMENT THAT IS IN DEFAULT FOR A PERIOD THAT IS LONGER THAN 21 DAYS.”

(f)

If the commissioner determines that a retail seller or creditor that was operating under this subchapter on September 1, 1999, and that charges a delinquency charge in excess of $10, moved its credit operations out of this state after September 1, 1999, in a manner that results in the retail seller’s or creditor’s retail charge agreements not being subject to this subchapter, the commissioner shall collect from the retail seller or creditor an amount equal to 25 cents for each delinquency charge in excess of $10 collected during the 12-month period preceding the date of the move.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1348, Sec. 4, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1182 (H.B. 3453), Sec. 8, eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 767 (H.B. 1442), Sec. 27, eff. September 1, 2019.

Source: Section 345.157 — Delinquency Charge, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­345.­htm#345.­157 (accessed Jun. 5, 2024).

345.001
Definitions 345.002
Goods 345.003
Services 345.004
Cash Price 345.005
Itemized Charge 345.006
Time Price Differential Not Interest 345.007
Applicability of Chapter 345.008
Applicability of Other Statutes to Retail Installment Transaction 345.009
Disclosure Requirements if Conflict with Federal Law 345.051
Retail Installment Contract General Requirements 345.052
Contents of Contract 345.053
Disclosure of Promise to Compensate for Referral 345.054
Time Price Differential for Contract 345.055
Time Price Differential for Contract Payable in Equal Monthly Payments 345.056
Use of Optional Ceiling 345.057
Time Price Differential for Other Contracts 345.058
Minimum Time Price Differential for Contract 345.059
Principal Balance Computation 345.060
Charges for Default in Payment of Installment 345.061
Charges for Collecting Debt 345.062
Acceleration of Debt Maturity 345.063
Requirements for Contract that Is More than One Document 345.064
Completion of Contract 345.065
Delivery of Copy of Contract 345.066
Buyer’s Right to Rescind Contract 345.067
Buyer’s Acknowledgment of Delivery of Contract Copy 345.068
Bailment or Lease as Retail Installment Transaction 345.069
Deferment of Installment 345.070
Amendment of Contract 345.071
Confirmation of Amendment 345.072
Contract After Amendment 345.073
Prepayment of Contract 345.074
Refund Credit on Prepayment 345.075
Amount of Refund Credit for Monthly Installment Contract 345.076
Amount of Refund Credit for Other Contracts 345.077
Reinstatement of Contract 345.078
Consolidation of Contracts 345.079
Allocation of Payments on Consolidation of Contracts 345.080
Obligation Under More than One Contract 345.081
Certificate of Completion or Satisfaction of Contract 345.082
Statement of Payments and Amount Due Under Contract 345.083
Receipt for Cash Payment 345.084
Debt Cancellation Agreement 345.101
Making Retail Charge Agreement 345.102
Agreement General Requirements 345.103
Time Price Differential for Agreement 345.104
Use of Optional Ceiling 345.105
Charges for Collection of Payment of Agreement 345.106
Processing Fee for Returned Check 345.107
Prohibited Fees 345.108
Prohibition on Signing of Agreement with Blank Spaces 345.109
Delivery of Copy of Agreement 345.110
Buyer’s Acknowledgment of Delivery of Agreement Copy 345.111
Statement of Cash Price 345.112
Agreement Balance Statement 345.113
Compliance with Federal Law Considered Compliance with Chapter’s Disclosure Requirements 345.155
Time Price Differential Computation and Amount 345.156
When Charging of Time Price Differential Prohibited 345.157
Delinquency Charge 345.158
Retail Charge Agreement to Which Subchapter Does Not Apply 345.201
Property Insurance 345.202
Credit Life, Credit Health and Accident, and Credit Involuntary Unemployment Insurance 345.203
Maximum Amount of Insurance Coverage 345.204
Insurance Statement 345.205
Insurance May Be Furnished by Buyer 345.206
Buyer’s Failure to Provide Evidence of Insurance 345.207
Charges for Other Insurance Included in Retail Installment Contract 345.208
Requirements for Including Insurance Charge in Contract or Agreement 345.209
Delivery of Insurance Document to Buyer 345.210
Holder’s Duty if Insurance Is Adjusted or Terminated 345.211
Gain or Advantage from Insurance Not Additional Charge 345.212
Nonfiling Insurance 345.213
Inclusion of Insurance Premiums 345.214
Adding to Retail Installment Contract Premiums for Insurance Acquired After Transaction 345.215
Effect of Adding Premium to Contract or Agreement 345.251
Documentary Fee for Certain Vehicles 345.252
Time Price Differential for Certain Prepaid Funeral Benefits 345.253
Time Price Differential for Medical and Dental Services 345.301
Authority to Acquire 345.302
Lack of Notice Does Not Affect Validity as to Certain Creditors 345.303
Payment by Buyer 345.304
Preservation of Buyer’s Right of Action or Defense 345.351
Registration of Holder 345.352
Seller’s Promise to Pay or Tender of Cash to Buyer as Part of Transaction 345.353
Making of Contract or Agreement by Mail or Telephone 345.354
Prohibition on Power of Attorney to Confess Judgment and Assignment of Wages 345.355
Prohibition on Certain Acts of Repossession 345.356
Buyer’s Waiver 345.357
Prohibition on Certain Liens
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 345.157’s source at texas​.gov