A retail installment sales contract must include all provisions
required by Texas Finance Code, Chapter 348, and other law. The contract
must include the following disclosures and provisions, as applicable:
(1) The consumer warning required by Texas Finance
Code, §348.102(d).
(2) The cash price as required by Texas Finance Code,
§348.102(a)(5). The cash price may be disclosed as a separate
item in the Itemization of Amount Financed or elsewhere in the contract.
The cash price is the price at which the seller offers in the ordinary
course of business to sell for cash the goods or services that are
subject to the transaction.
(3) The amount of any downpayment, specifying the amounts
paid in money and in goods traded in, as required by Texas Finance
Code, §348.102(a)(6). An amount paid by the seller under Texas
Finance Code, §348.404 to retire an amount owed (including amounts
owed under a vehicle lease) against a motor vehicle used as a trade-in
("payoff") may be disclosed in several ways. The approaches outlined
in the Regulation Z Staff Commentary, as from time to time updated,
are permissible.
(4) The amounts of any itemized charges not included
in the cash price, as required by Texas Finance Code, §348.102(a)(7).
Itemized charges may include the following charges as applicable and
any other charges that are authorized to be included in the itemized
charges under Texas Finance Code, Chapter 348:
(A) State inspection fee;
(B) Documentary fee;
(C) Dealer's inventory tax;
(D) Sales tax;
(E) Other taxes not included in the cash price (the
seller may disclose one aggregate amount for all taxes or may separately
itemize one or more of the taxes);
(F) Deputy service fee;
(G) Title fee;
(H) License fee;
(I) Vehicle property insurance;
(J) Credit life and credit disability insurance;
(K) GAP insurance, as authorized by Texas Finance Code,
§348.208(b)(4);
(L) Debt cancellation agreement;
(M) Theft protection plan;
(N) Service contract;
(O) Warranty contract;
(P) Identity recovery service contract;
(Q) Automobile club membership;
(R) Trade-in credit agreement;
(S) Depreciation benefit optional member program.
(5) The insurance statement required by Texas Finance
Code, §348.204.
(6) Notice of exclusion of bodily injury and property
damage insurance, if excluded, as required by Texas Finance Code,
§348.205.
(7) Any documentary fee charged must be separately
disclosed, either in the itemization or elsewhere, along with the
description required by Texas Finance Code, §348.006 in reasonable
proximity to the disclosure of the documentary fee. Any foreign language
translation of this disclosure that is required under Texas Finance
Code, §348.006 may be given in a separate document.
(8) A disclosure that the buyer may refinance the final
scheduled payment upon the terms previously agreed or for any other
period of time and payment schedule to which the buyer and holder
may agree for a contract described in Texas Finance Code, §348.123(b)(5).
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| Source Note: The provisions of this §84.804 adopted to be effective May 8, 2008, 33 TexReg 3584; amended to be effective November 5, 2009, 34 TexReg 7610; amended to be effective May 5, 2016, 41 TexReg 3120; amended to be effective September 7, 2017, 42 TexReg 4462 |
