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Can you summarize Tex. Fin. Chapter 346?
LOANS AND FINANCED TRANSACTIONS > REVOLVING CREDIT ACCOUNTS
Short Summary
This legal document found in the Texas Statutes under the Finance Code regulates revolving credit accounts. It defines a revolving credit account as an open-end account established by a creditor for a customer under a written agreement. The document outlines provisions such as the computation of the average daily balance, debiting of unpaid balances and interest, and the ability to defer payment. It also introduces revolving loan accounts and revolving triparty accounts. The chapter primarily applies to revolving credit accounts used for personal, family, or household purposes in Texas. A creditor in a revolving credit account for personal, family, or household use must hold a license under Chapter 342, unless exempted. The document governs the fees that can be charged to or collected from a customer, including an annual fee, late charge, cash advance charge, returned check fee, and fee for exceeding the credit limit. It prohibits charging interest on these fees and requires a notice regarding the late charge. Additional fees or charges can be contracted for secured revolving credit accounts. The document also governs the duties and authority of creditors, including the ability to require insurance or collateral and recover various amounts from a customer. It allows a creditor to enter into multiple revolving credit accounts and unilaterally amend them. However, adverse changes must take effect after a 90-day notice, unless made under specific provisions. The document does not change a creditor’s obligation to comply with the Consumer Credit Protection Act and prohibits accelerating or demanding immediate payment unless the customer is in default.
Whom does it apply to?
This document applies to creditors and customers with revolving credit accounts primarily used for personal, family, or household purposes, and located in Texas at the time the loan is made or the extension of credit is entered into.
What does it govern?
This legal document governs the establishment and operation of revolving credit accounts in Texas.
What are exemptions?
The document does not mention any specific exemptions.
What are the Penalties?
No penalties are mentioned in this document.
Jurisdiction
Texas