House Bill No. 4134, introduced by Lujan, proposes the addition of Section 348.416 to Subchapter E, Chapter 348 of the Finance Code, which addresses the collection of convenience fees for processing electronic payments related to retail installment contracts for motor vehicles. The bill defines "electronic payment" to include various forms such as credit cards, debit cards, and electronic checks. It stipulates that a holder of a retail installment contract or their agent may charge a fee for processing these payments, provided that the fee is reasonable, does not exceed $10 or 5% of the payment amount, and certain conditions are met.

Specifically, the bill requires that the holder or their agent must allow buyers to make payments through non-electronic methods without incurring a fee, must not designate electronic payment as the default method, and must inform buyers of the fee and alternative payment options before they agree to make an electronic payment. This legislation is set to take effect on September 1, 2025.

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