(a) Each contract for the purchase of the services of a credit services organization by a consumer must be in writing, dated, and signed by the consumer.
(b) In addition to the notice required by § 393.202, the contract must:
(1) contain the payment terms, including the total payments to be made by the consumer, whether to the organization or to another person;
(2) fully describe the services the organization is to perform for the consumer, including each guarantee and each promise of a full or partial refund and the estimated period for performing the services, not to exceed 180 days;
(3) contain the address of the organization’s principal place of business; and
(4) contain the name and address of the organization’s agent in this state authorized to receive service of process.

Terms Used In Texas Finance Code 393.201

  • Contract: A legal written agreement that becomes binding when signed.
  • Fair Debt Collection Practices Act: The Fair Debt Collection Practices Act is a set of United States statutes added as Title VIII of the Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collection of consumer debts and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act. Source: OCC
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Service of process: The service of writs or summonses to the appropriate party.
  • Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005

(c) A contract with a credit access business, as defined by § 393.601, for the performance of services described by § 393.602(a) must, in addition to the requirements of Subsection (b) and § 393.302:
(1) contain a statement that there is no prepayment penalty;
(2) contain a statement that a credit access business must comply with Chapter 392 and the federal Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.) with respect to an extension of consumer credit described by § 393.602(a);
(3) contain a statement that a person may not threaten or pursue criminal charges against a consumer related to a check or other debit authorization provided by the consumer as security for a transaction in the absence of forgery, fraud, theft, or other criminal conduct;
(4) contain a statement that a credit access business must comply, to the extent applicable, with 10 U.S.C. § 987 and any regulations adopted under that law with respect to an extension of consumer credit described by § 393.602(a);
(5) disclose to the consumer:
(A) the lender from whom the extension of consumer credit is obtained;
(B) the interest paid or to be paid to the lender; and
(C) the specific fees that will be paid to the credit access business for the business’s services; and
(6) the name and address of the Office of Consumer Credit Commissioner and the telephone number of the office’s consumer helpline.

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