2023 Texas Statutes › Finance Code › Title 4 - Regulation of Interest, Loans, and Financed Transactions › Subtitle B - Loans and Financed Transactions › Chapter 348 - Motor Vehicle Installment Sales › Subchapter B. Retail Installment Contract › Section 348.113. Amendment of Retail Installment Contract

Sec. 348.113.  AMENDMENT OF RETAIL INSTALLMENT CONTRACT.  On request by a retail buyer, the holder may agree to one or more amendments to the retail installment contract to:
(1)  extend or defer the scheduled due date of all or a part of one or more installments;  or
(2)  renew, restate, or reschedule the unpaid balance under the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Sec. 348.114.  CHARGES FOR DEFERRING INSTALLMENT.  (a)  If a retail installment contract that provides for a time price differential that is computed using the add-on method or the scheduled installment earnings method is amended to defer all or a part of one or more installments for not longer than three months, the holder may collect from the retail buyer:
(1)  a deferment charge in an amount computed on the amount deferred for the period of deferment at a rate that does not exceed the effective return for time price differential permitted for a monthly payment retail installment contract; and
(2)  the amount of the additional cost to the holder for:
(A)  premiums for continuing in force any insurance coverages provided for by the contract; and
(B)  any additional necessary official fees.
(b)  The minimum charge under Subsection (a)(1) is $1.
(c)  If a retail installment contract that provides for a time price differential that is computed using the true daily earnings method is amended to defer all or a part of one or more installments, the holder may charge and receive from the retail buyer time price differential on the unpaid balance of the contract at the rate agreed to in the contract.  At the time of deferment, the holder must provide the following written notice to the retail buyer that is boldfaced, capitalized, or underlined or otherwise conspicuously set out from any surrounding written material:  "FINANCE CHARGES WILL CONTINUE TO ACCRUE ON THE UNPAID BALANCE AT THE CONTRACT RATE.  BY DEFERRING ONE OR MORE INSTALLMENTS, YOU WILL PAY MORE FINANCE CHARGES THAN ORIGINALLY DISCLOSED."  A holder does not collect a deferment charge by the accrual of time price differential on the unpaid balance of the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 3, eff. September 1, 2017.
Sec. 348.115.  CHARGE FOR OTHER AMENDMENT.  (a)  If the unpaid balance of a retail installment contract is extended, renewed, restated, or rescheduled under this subchapter and Section 348.114 does not apply, the holder may collect an amount computed on the principal balance of the amended contract for the term of the amended contract at the time price differential for a retail installment contract that is applicable after reclassifying the motor vehicle by its model year at the time of the amendment.
(b)  The principal balance of the amended contract is computed by:
(1)  adding:
(A)  the unpaid balance as of the date of amendment;
(B)  the cost of any insurance incidental to the amendment;
(C)  the amount of each additional necessary official fee;  and
(D)  the amount of each accrued delinquency or collection charge;  and
(2)  subtracting from the total computed under Subdivision (1) an amount equal to the prepayment refund credit required by Section 348.120 or 348.121, as applicable.
(c)  The provisions of this chapter relating to minimum charges under Section 348.104 and acquisition costs under the refund schedule under Section 348.120 do not apply in computing the principal balance of the amended contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.