10 Feb Retail Installment Contract Texas

Retail installment contracts (RICs) are agreements between a retailer and a buyer that allow the buyer to pay for merchandise over a period of time. RICs are governed by Texas law and are subject to a number of regulatory requirements.

The Texas Finance Code sets forth the rules governing RICs in Texas. Specifically, it requires that RICs be in writing and contain certain provisions, including the total cost of the merchandise, the amount of the down payment, the finance charge, and the number and amount of payments. RICs must also include a statement of the buyer`s rights under Texas law and must be signed by both the buyer and the retailer.

One of the key requirements of RICs in Texas is the disclosure of the finance charge. The finance charge is the cost of borrowing the money to purchase the merchandise, and it is expressed as an annual percentage rate (APR). Texas law requires that RICs disclose the APR, the total amount of finance charges paid over the life of the contract, and the total amount of payments required to pay off the contract.

Another important requirement of RICs in Texas is the right of the buyer to cancel the contract. Texas law allows buyers to cancel RICs within three days of signing the contract. The buyer must provide written notice of cancellation to the retailer, and the retailer is required to return any payments made by the buyer within 10 days of receiving the notice.

In addition to these requirements, Texas law also sets limitations on the terms of RICs. For example, RICs in Texas cannot have a finance charge greater than 30% per year, and the term of the contract cannot be longer than four years.

If you are considering purchasing merchandise through a retail installment contract in Texas, it is important to understand your rights and the requirements of the law. By doing so, you can ensure that you are making an informed decision and that you are protected under Texas law.