CHAPTER 339. MISCELLANEOUS PROVISIONS RELATING TO INTEREST
FINANCE CODE
TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS
SUBTITLE A. INTEREST
CHAPTER 339. MISCELLANEOUS PROVISIONS RELATING TO INTEREST
Sec. 339.001. IMPOSITION OF SURCHARGE FOR USE OF CREDIT CARD.
(a) In a sale of goods or services, a seller may not impose a
surcharge on a buyer who uses a credit card for an extension of
credit instead of cash, a check, or a similar means of payment.
(b) This section does not apply to a state agency, county, local
governmental entity, or other governmental entity that accepts a
credit card for the payment of fees, taxes, or other charges.
(c) The Finance Commission of Texas shall have exclusive
jurisdiction to enforce and adopt rules relating to this section.
Rules adopted pursuant to this section shall be consistent with
federal laws and regulations governing credit card transactions
described by this section. This section does not create a cause
of action against an individual for violation of this section.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept.
1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1018, Sec. 2.15, eff. September 1, 2005.
Sec. 339.002. BILLING CYCLE INTEREST LIMITATION ON OPEN-END
ACCOUNT WITHOUT MERCHANT DISCOUNT. (a) This section applies to
an open-end account agreement that provides for credit card
transactions:
(1) in which the creditor relies on one of the ceilings
authorized by Chapter 303 for the rate of interest; and
(2) in connection with which the creditor does not impose or
receive a merchant discount.
(b) Interest or time price differential may not be charged for a
billing cycle of an open-end account credit agreement if:
(1) the total amount of the obligor's payments during the cycle
equal or exceed the balance owed under the agreement at the end
of the preceding billing cycle; or
(2) an amount is not owed under the agreement at the end of the
preceding billing cycle.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept.
1, 1999.
Sec. 339.003. SALE OF OPEN-END ACCOUNT WITHOUT MERCHANT
DISCOUNT. A seller or lessor may sell an open-end account credit
agreement described by Section 339.002(a) or any balance under
that agreement to a purchaser who purchases a substantial part of
the seller's or lessor's open-end account credit agreements or
balances under those agreements in accordance with Subchapter G,
Chapter 345. A charge, fee, or discount on that sale:
(1) is not a merchant discount;
(2) does not disqualify the open-end account credit agreement or
a balance under that agreement from being subject to Chapter 303
or from coverage under this section; and
(3) does not subject the account to the limitations provided by
Section 303.006(c).
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept.
1, 1999.
Sec. 339.004. APPLICATION OF LICENSING REQUIREMENT AND SUBTITLE
B TO CREDIT UNION OR EMPLOYEE BENEFIT PLAN. (a) A credit union
is not subject to Subtitle B and is not required to obtain a
license under this title.
(b) With respect to a loan that an employee benefit plan that is
subject to Title I of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. Sections 1001-1114) makes to a participant in
the plan or a participant's beneficiary, the plan is not subject
to Subtitle B and is not required to obtain a license under this
title.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept.
1, 1999.
Sec. 339.005. APPLICABILITY OF CERTAIN FEDERAL LAW. This title
does not override or restrict the applicability of 12 U.S.C.
Section 1735f-7a.
Added by Acts 2001, 77th Leg., ch. 916, Sec. 9, eff. Sept. 1,
2001.