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Texas Finance Code - FIN § 342.602. Disclosures to Military Borrowers

Current as of January 01, 2024 | Updated by Findlaw Staff

Before engaging in a deferred presentment transaction, a lender shall provide to a customer who is a member of the United States military or the member's spouse a written statement that clearly and conspicuously states that:

(1) the lender is prohibited by law from:

(A) garnishing the wages of any borrower, including a borrower who is a member of the United States military;

(B) conducting any collection activity against a borrower who is:

(i) a member of the armed forces of the United States who is deployed to combat or a combat support posting, for the duration of the posting;

(ii) a member of the Texas National Guard who is called to federal active duty, for the duration of the duty;

(iii) the spouse of a person described by Paragraph (i), for the duration of the posting;  or

(iv) the spouse of a person described by Paragraph (ii), for the duration of the duty;  or

(C) from contacting the employer of a member of the United States military about a deferred presentment debt of the member or the member's spouse;

(2) the lender shall honor the terms of a repayment agreement entered into with a member of the United States military or the member's spouse, including a repayment agreement negotiated through military counselors or third-party credit counselors;  and

(3) the lender shall honor any statement made by a commanding officer of a member of the United States military declaring any location where deferred presentment transaction business is to be conducted by the lender to be a place at which a member of the United States military or the member's spouse is prohibited from transacting business.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 342.602. Disclosures to Military Borrowers - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-342-602/

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