Section 83.837 - Disclosure when Automobile Club Membership Offered in Connection with Loan(a) If an automobile club membership is offered in connection with a loan under Texas Finance Code, Chapter 342, Subchapter E, the disclosure contained in subsection (c) of this section is sufficient to satisfy the requirements of Texas Finance Code, § 342.457 if printed in a size equal to at least 10-point type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written material so as to be conspicuous. (b) The text of the disclosure must be set in an easily readable typeface. Typefaces considered to be easily readable include Times, Scala, Caslon, Century Schoolbook, Helvetica, Arial, and Garamond. (c) The lender must provide this disclosure in both English and Spanish to all borrowers who are offered an automobile club membership in connection with their loans. The automobile club membership disclosure must read as follows: (1) "I AM NOT REQUIRED TO PURCHASE THIS AUTOMOBILE CLUB MEMBERSHIP AS A CONDITION FOR APPROVAL OF THIS LOAN. I CAN CANCEL THIS MEMBERSHIP WITHIN 31 DAYS AND RECEIVE A FULL REFUND OF THE PURCHASE PRICE." (2) Spanish Translation: "NO SE REQUIERE QUE COMPRE ESTA MEMBRESÍA DE CLUB AUTOMOTRIZ COMO CONDICIÓN PARA LA APROBACIÓN DE ESTE PRÉSTAMO. PUEDO CANCELAR ESTA MEMBRESÍA DENTRO DE 31 DÍAS Y RECIBIR UN REEMBOLSO TOTAL DEL PRECIO DE COMPRA." (d) The disclosure contained in subsection (c) of this section may be located in one of the following: (1) the enrollment agreement;(2) the loan contract; or (e) Evidence of the borrower's intent to purchase an automobile club membership must be acknowledged in writing by the borrower's signature or initials on the document containing the disclosure. 7 Tex. Admin. Code § 83.837
The provisions of this §83.837 adopted to be effective November 9, 2006, 31 TexReg 9006; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 5142