Tex. Fin. Code Section 353.107
Charge for Default in Payment of Installment

(a)

A retail installment contract may provide that if an installment remains unpaid after the 10th day after the maturity of the installment for a heavy commercial vehicle or after the 15th day after the maturity of the installment for any other commercial vehicle the holder may collect:

(1)

a delinquency charge that does not exceed five percent of the amount of the installment; or

(2)

interest on the amount of the installment accruing after the maturity of the installment and until the installment is paid in full at a rate that does not exceed the maximum rate authorized for the contract.

(b)

A retail installment contract that provides for the true daily earnings method or the scheduled installment earnings method may provide for the delinquency charge authorized by Subsection (a)(1), the interest authorized by Subsection (a)(2), or both.

(c)

Only one delinquency charge under Subsection (a)(1) may be collected on an installment under this section regardless of the duration of the default.
Added by Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 17, eff. September 1, 2011.

Source: Section 353.107 — Charge for Default in Payment of Installment, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­353.­htm#353.­107 (accessed Jun. 5, 2024).

353.001
Definitions 353.002
Presumption Regarding Noncommercial Vehicles 353.003
Bailment or Lease as Retail Installment Transaction 353.004
Classification as Retail Installment Transaction Unaffected 353.005
Cash Price 353.006
Itemized Charge 353.007
Additional Charges Permitted 353.008
Principal Balance 353.009
Applicability of Chapter 353.010
Applicability of Other Statutes to Retail Installment Transaction 353.011
Federal Disclosure Requirements 353.012
Additional Information Allowed in Contract 353.013
Order of Items in Contract 353.014
Applicability of Insurance Premium Financing Provisions 353.015
Conditional Delivery Agreement 353.016
Computation of Time Price Differential Using True Daily Earnings Method 353.017
Transaction Conditioned on Purchase of Vehicle Protection Product Prohibited 353.101
Retail Installment Contract General Requirements 353.102
Contract Conditioned on Subsequent Assignment Prohibited 353.103
Time Price Differential for Retail Installment Contract 353.104
Time Price Differential for Contract with Equal Monthly Successive Payments 353.105
Use of Optional Ceiling 353.106
Time Price Differential for Other Contracts 353.107
Charge for Default in Payment of Installment 353.108
Charges for Collecting Debt 353.109
Acceleration of Debt Maturity 353.110
Delivery of Copy of Contract 353.111
Buyer’s Right to Rescind Contract 353.112
Buyer’s Acknowledgment of Delivery of Contract Copy 353.113
Amendment of Retail Installment Contract 353.114
Charges for Deferring Installment 353.115
Charge for Other Amendment 353.116
Confirmation of Amendment 353.117
Contract After Amendment 353.118
Prepayment of Contract 353.119
Refund Credit on Prepayment 353.120
Amount of Refund Credit for Monthly Installment Contract 353.121
Refund on Contracts Using Scheduled Installment Earnings Method 353.122
Reinstatement of Contract After Demand for Payment 353.201
Property Insurance 353.202
Credit Life and Credit Health and Accident Insurance 353.203
Maximum Amount of Credit Life and Credit Health and Accident Coverage 353.204
Insurance Statement 353.205
Statement if Liability Insurance Not Included in Contract 353.206
Buyer’s Failure to Provide Evidence of Insurance 353.207
Charges for Other Insurance and Forms of Protection Included in Retail Installment Contract 353.208
Holder’s Duty if Insurance Is Adjusted or Terminated 353.209
Gain or Advantage from Insurance Not Additional Charge 353.210
Adding to Retail Installment Contract Premiums for Insurance Acquired After Transaction 353.211
Effect of Adding Premium to Contract 353.212
Financing Entity May Not Require Insurance from Particular Source 353.301
Authority to Acquire 353.302
Lack of Notice Does Not Affect Validity as to Certain Creditors 353.303
Payment by Buyer 353.401
Seller’s Promise to Pay or Tender of Cash to Buyer as Part of Transaction 353.402
Seller’s Action for Incentive Program or to Pay for Buyer’s Motor Vehicle 353.403
Statement of Payments and Amount Due Under Contract 353.404
Receipt for Cash Payment 353.405
Outstanding Balance Information 353.406
Liability Relating to Outstanding Balance Information 353.407
Prohibition on Power of Attorney to Confess Judgment or Assignment of Wages 353.408
Prohibition on Certain Acts of Repossession 353.409
Buyer’s Waiver 353.410
Transfer of Equity 353.501
License Required 353.502
Application Requirements 353.503
Investigation of Application 353.504
Approval or Denial of Application 353.505
Disposition of Fees on Denial of Application 353.506
License Fee 353.507
Expiration of License on Failure to Pay Fee 353.508
License Suspension or Revocation 353.509
Reinstatement of Suspended License 353.510
Surrender of License 353.511
Effect of License Suspension, Revocation, or Surrender 353.512
Transfer or Assignment of License 353.513
Adoption of Rules 353.514
General Investigation 353.515
Sharing of Information 353.5055
License Term 353.5065
Grounds for Refusal of Renewal
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 353.107’s source at texas​.gov