Section 209.2 - [Effective 11/14/2024] Charges for Dishonored Payment Device(a) Purpose. Business and Commerce Code, §3.506, authorizes the holder of a dishonored payment device, seeking collection of the face value of the payment device, to charge the drawer or indorser of the payment device a reasonable processing fee, not to exceed $30. This section prescribes policies and procedures for the processing of a dishonored payment device made payable to the department and the collection of fees because of the dishonor of a payment device made payable to the department.(b) Definitions. The definitions contained in Business and Commerce Code, Chapter 3 govern this section and control to the extent of a conflict with the following definitions in this subsection. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Dishonored payment device--A payment device that is drawn or made upon a bank or other financial institution, and that is not honored upon presentment for reasons including, but not limited to, the account upon which the payment device has been drawn or made does not exist, is closed, or does not have sufficient funds or credit for payment of the payment device in full.(3) Payment device--A check, item, paper or electronic payment, or other device used as a medium for payment.(c) Processing of a dishonored payment device. Upon receipt of notice from a bank or other financial institution of refusal to honor a payment device made payable to the department, the department shall process the dishonored payment device using the following procedures; however, the department shall not charge a $30 processing fee to the drawer or indorser if the department is prohibited from doing so under Business and Commerce Code, §3.506. (1) The department shall send a written notice by certified mail, return receipt requested, to the drawer or indorser at the drawer or indorser's address as shown on: (A) the dishonored payment device;(B) the records of the bank or other financial institution; or(C) the records of the department.(2) The written notice shall notify the drawer or indorser of the dishonored payment device and shall request payment of the face amount of the payment device, any service charge under § 209.23 of this title (relating to Methods of Payment), and a $30 processing fee no later than 10 days after the date of receipt of the notice. The written notice shall also contain the statement required by Penal Code, §32.41(c)(3).(3) The face amount of the payment device, any service charge under § 209.23 of this title, and the $30 processing fee must be paid to the department: (A) with a cashier's check or money order, made payable to the Texas Department of Motor Vehicles; or(B) with a valid credit card, approved by the department, and issued by a financial institution chartered by a state or the United States, or a nationally recognized credit organization.(4) Payments made by credit card must include the service charge required by § 209.23 of this title.(5) If payment is not received within 10 days after the date of receipt of the notice, the obligation shall be considered delinquent and shall be processed in accordance with § 209.1 of this title (relating to Collection of Debts).(d) Supplemental collection procedures. In addition to the procedures described in § 209.1 of this title, the department may notify appropriate credit bureaus or agencies if the drawer or indorser fails to pay the face amount of a dishonored payment device, any service charge required under § 209.23 of this title, and the $30 processing fee. In addition, the department may refer the matter for criminal prosecution.(e) Any payment to the department from the drawer or indorser of a dishonored payment device shall be applied first to the $30 processing fee, then to any service charge required by § 209.23 of this title, and then to the face amount of the dishonored payment device.43 Tex. Admin. Code § 209.2
The provisions of this §209.2 adopted to be effective February 4, 2010, 35 TexReg 660; amended to be effective March 12, 2014, 39 TexReg 1727; amended by Texas Register, Volume 39, Number 48, November 28, 2014, TexReg 9368, eff. 12/7/2014; Amended by Texas Register, Volume 42, Number 25, June 23, 2017, TexReg 3273, eff. 6/28/2017; Amended by Texas Register, Volume 49, Number 45, November 8, 2024, TexReg 8949, eff. 11/14/2024