CHAPTER 339. MISCELLANEOUS PROVISIONS RELATING TO INTEREST - Texas Statutes

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.