Finance Code › Title 5 › Chapter 398 › Subchapter B

Texas Finance Code § 398.056

Certain Automatic Debits Prohibited

Commercial Sales-Based Financing · Regulation and Disclosure Requirements

A provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient's deposit account unless the provider or broker holds a validly perfected security interest in the recipient's account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.

Official text of the Texas Finance Code as published by the Texas Legislative Council.

Official source
Legislative history

Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.