Tex. Finance Code § 348.107
This is the official text of Tex. Finance Code § 348.107, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 348.107. CHARGE FOR DEFAULT IN PAYMENT OF INSTALLMENT.
Official statutory text
(a) A retail installment contract may provide that if an installment remains unpaid after the 15th day after the maturity of the installment the holder may collect:
(1) a delinquency charge that does not exceed five percent of the amount of the installment; or
(2) interest on the amount of the installment accruing after the maturity of the installment and until the installment is paid in full at a rate that does not exceed the maximum rate authorized for the contract.
(b) A retail installment contract that provides for the accrual earnings method may provide for the delinquency charge authorized by Subsection (a)(1), the interest authorized by Subsection (a)(2), or both.
(c) Only one delinquency charge may be collected on an installment under this section regardless of the duration of the default.
(1) a delinquency charge that does not exceed five percent of the amount of the installment; or
(2) interest on the amount of the installment accruing after the maturity of the installment and until the installment is paid in full at a rate that does not exceed the maximum rate authorized for the contract.
(b) A retail installment contract that provides for the accrual earnings method may provide for the delinquency charge authorized by Subsection (a)(1), the interest authorized by Subsection (a)(2), or both.
(c) Only one delinquency charge may be collected on an installment under this section regardless of the duration of the default.
Status: in_force · Read it on the official government site
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