Consumer Assistance Links

Supervised, Registered, & Licensed Entities

Entities Not Supervised

How to File a Complaint

Regulated Entities

Banks & Holding Companies

Foreign Banks

Trust Companies

Money Services Businesses

Prepaid Funeral Contracts

Perpetual Care Cemeteries

Private Child Support
Enforcement Agencies

Frequently Asked Questions

The Department is not providing legal advice by providing this information to the public but merely interpreting the Texas Statutes associated with banking in Texas. If you have a question that does not appear to be addressed here, please email Consumer Assistance Activities.

Select the regulated entity to see a list of frequently asked consumer questions, along with the Department's responses.

	Banking and State-Chartered Banks \| Money Services Businesses
	Perpetual Care Cemeteries \| Prepaid Funeral Benefit Contracts
	Trust Companies \| Private Child Support Enforcement Agencies
	Human Resources/Employment \| Open Records Policies & Procedures
	Check Verification Entities \| How to Obtain a Letter of No Objection

Banking and State Chartered Banks

	Fees \| Personal Information \| Identity Theft \| My Bank Account
	Loans \| Home Equity Loans \| Dormant/Inactive \| Miscellaneous

Fees

Question: Can a bank charge a check cashing fee to non-customers?
Answer: Yes. Institutions are allowed to charge a check cashing fee. The Department issued a press release on August 31, 2001 regarding this matter. Since then, the court ruled that the Texas law was not enforceable and therefore the institutions could continue the practice of charging a fee for cashing their checks.

Question: Is there a limit that a bank can charge for processing non-sufficient items?
Answer: No. The charge only has to be disclosed, however Business and Commerce Code Section 3.506 (a) limits the fee that non-bank holders of dishonored checks can charge to $30.00.

Question: Is there any limit on how much a bank can charge for automatic teller machine (ATM) transactions?
Answer: No. There is no state law prohibiting or limiting ATM charges. The decision to charge a fee, and the amount of the fee, are matters of individual bank policy. If a fee is charged, your bank must fully detail the charges when the card is received. The Federal Reserve amended Regulation E (Electronic Fund Transfers Act) to implement provisions of the Gramm-Leach Bliley Act (GLBA) requiring disclosure of ATM fees. Under the GLBA amendments, an ATM operator that imposes a fee on a consumer for an electronic fund transfer (EFT) service is required to provide notice of that fact in a prominent and conspicuous location on or at the ATM where the EFT is initiated. The ATM operator must also disclose that a fee will be imposed together with the amount of the fee, either on the screen of the ATM or on a paper notice, before the consumer is committed to completing the transaction. No fee may be imposed unless proper notice is provided and the consumer elects to complete the transaction.

Every time the bank issuing the card charges a fee, the fee will appear on the customer’s monthly statement. When an ATM card is used to make purchases, a retailer may also add a fee to your purchase total. If this happens, the store is required by law to disclose the charge to the customer in a display at the checkout counter. The retailer’s fee is added to the purchase amount.

Question: Are non sufficient funds (NSF) fees considered interest and subject to usury?
Answer: No. "NSF" fees are not calculated as interest. They are fees associated with the processing of an "NSF" check.

Personal Information

Question: What information can a bank legally request from me when I cash a check?
Answer: The Texas Business and Commerce Code specifically requires a bank to verify the authenticity of an indorsement on any check presented to them, but there is no law or regulation specifying what procedures they should use. Each bank sets, by policy, what means of identification they will require before cashing a check. Some Texas financial institutions participate in a "thumb-printing" program, which requires that non-account holders apply their thumbprint in clear ink next to their endorsement when cashing a check in a bank where they do not have an account. The Texas Department of Banking does not endorse nor object to this program. It should be noted that banks are not required by a law to cash checks for non-account holders, and some institutions refuse to do so as a means of limiting their losses due to check fraud.

Question: The Texas Department of Banking is listed on my Opt Out Notice as a point of contact. Do you process opt out notices?
Answer: Opt out notices are not processed by the Department of Banking. Our contact information is listed in case a consumer has a complaint against our regulated or registered entity. You must contact your bank directly to exercise your right to opt out, if one exist. The notice should contain a reasonable way to opt out, such as a reply form, a form of electronic means to opt out, a toll free number.

Question: Why am I getting another Opt Out Notice from my bank?
Answer: The Gramm-Leach-Bliley Financial Modernization Act of 1999 (GLB Act) and Regulation P requires financial institutions to give consumers privacy notices on an annual basis that explain the institutions' information-sharing practices.

Consumers have the right to say no or yes to having their information shared with certain third parties. These parties include a financial institutions affiliates. Consumer cannot opt out of sharing information with companies that provide essential services or companies that provide marketing for their bank’s products or services.

IF and when your bank merges with another institution and the "new" bank has a privacy policy that is less protective of your personal information, a new notice must be provided to the you. The new bank must give you the right to opt out before it can apply the less-protective policy to your personal information.

Your opt out request remains in effect until you contact the institution in writing or electronically and asking them to cancel it.

Identity Theft

Question: I was a victim of identity theft and closed my bank account. My bank did not allow me to report my closed account to a check verification company. How do I report that I was a victim?
Answer: If your bank does not allow you to report your closed account to a check verification company, please contact us.

Question: What do I do if I am a victim of ID Theft or credit fraud?
Answer: If you believe that you are a victim of identity theft or credit fraud, it is recommended that you take the following steps:

Contact any one of the three major credit bureaus (Equifax, TransUnion, Experian) and request that a fraud alert be placed on your credit file. Once the credit bureau is notified, they will notify the other bureaus.
Notify the credit card issuer of the stolen card (if applicable)
Notify the bank of the stolen checks or check card (if applicable)
File a police report
Contact the Social Security Administration if someone is using your Social Security number
Contact the Federal Trade Commission (FTC) hotline 800-438-4338 and file a complaint. The FTC has an ID Theft Affidavit that you can download from their Web site.
Check your credit report for any accounts that you do not recognize. Check this periodically since some accounts are not reflected immediately.

Question: My receipt list my full credit card number. Doesn’t this advocate identity theft and what is being done to change this?
Answer: In the 78th Texas Legislative session, a law was passed which was aimed at reducing identify theft cases that resulted from credit card number being stolen. The law requires that a receipt or other documents issued from a credit card or debit card transaction only reflect the last four digits of an account number. Expiration dates are prohibited from being printed. This law applies to any cash register or machine placed in operation after August 31, 2003. For registers or machines in operation before September 1 ,2003, they must be in compliance by December 31, 2005. (Business and Commerce Code Ch. 35D).

My Bank Account

Question: When can I have access to deposits made into my account?
Answer: The 1987 federal "Expedited Funds Availability Act" (Regulation CC) sets forth the maximum number of business days that funds may be held for collection (see below). Exceptions are permitted in special circumstances; however, the customer must be notified at the time the deposit is made as to the reason for and length of time of the hold period. Examples of special circumstances which could result in a longer hold period include: new accounts, large deposits, re-deposited checks, repeated overdrafts and doubts as to the collectibility of the deposited item. A reasonable period of time is defined as 1 additional business day for "on-us" checks, 5 additional business days for local checks, and 6 additional business days for non-local checks.

Type of Deposit	Maximum Hold	Available Next Day
Local check	Available next day	$200 Effective July 21, 2011 (Dodd-Frank Act)
Non-local check	Available next day	$200 Effective July 21, 2011 (Dodd-Frank Act)
New Account	Bank’s discretion	Up to $5,000 on cash or U.S. Treasury Checks
Large Deposit (over $5,000)
Local	7 business days	1st $5,000
Non-local	7 business days	Must be made available as if the check were not a large deposit. If a special hold is placed on funds, then $200 can be made available on the next day and $4,800 can be made available on the 5th day. The remainder will be made available on the 7th day.

Question: How and when does the notice of funds availability need to be provided to me?
Answer: The funds availability notice must specifically state the availability periods for the various types of deposits that may be made to consumer accounts. The notice should be posted in a place where consumers making deposits are likely to see it before making their deposits, including ATMs. The notice is not required at drive-through teller windows or at night depository locations. The regulation requires that the notice of funds availability be on the front of all preprinted deposit slips. The notice only needs to state that deposits may not be available for immediate withdrawal. The notice is required only on deposit slips that are preprinted with the customer’s name and account number and furnished by the institution. This does not include counter deposit slips or on special deposit slips.

Question: Electronic conversion – what is it?
Answer: When you make a payment by check, the information from the check is extracted – your name, account number, check number, bank routing number, etc. – and used to make a one time electronic withdrawal from your account.

Question: I no longer receive my cancelled checks. Does the bank have to send me my original cancelled checks?
Answer: There is no law requiring that the original cancelled check(s) be returned to a consumer, however, the law requires that a legible copy of an item be provided upon request. Many banks are now providing imaged copies of checks to customers. By law, imaged copies of checks hold the same validity as an original item.

Question: Is there a limit to how many times a bank can run an insufficient check through for payment and collect an NSF fee?
Answer: The general practice for submitting a check is two times through the automated clearing process. The item can also be sent as an electronic item via the ACH network one time. After that, items are generally handled on a "collection basis" and result in higher fees.

Question: Can a bank pay checks that I’ve written in any order it chooses?
For example, if several checks are presented for payment in one day, only one of which is more than my balance, can the bank decide to post the larger item first and then the smaller items, even though this would result in more checks not clearing?
Answer: Banks have a right to establish their own policy concerning the order in which they process checks, as stated in the Texas Business & Commerce Code Section 4.303 (b). The Code states that a bank may pay "in any order" and is under no obligation to determine the time of day an item is received. If smaller items are paid first, then there are fewer overdrafts and fewer charges; however, mortgage and rent payments may be returned. Some banks feel that if larger items are paid first, then the most important items are not returned. Payment order may be noted in the deposit contract that customers sign when they open their account.

Question: What is the time frame that a bank is allowed to return a dishonored check?
Answer: In general, a bank has 24 hours, or 1 day, to return a dishonored check. The paying bank must return a dishonored item (ex. a check) before midnight of the banking day the item was received (Section 4.301, Texas Business and Commerce Code). Consumers should be aware that a check can be returned after this time frame if a problem exist with the item, such as counterfeit, an alteration, or forgery.

Question: When is a check no longer valid?
Answer: Other than a certified check, a bank is under no obligation to pay a check which is presented more than six months after its date. Of course if presented a bank may honor the check in good faith. Reference should be made to any provisions in the depository contracts.

Question: Can a bank accept and pay a post-dated check?
Answer: Yes. According to Section 4.401(c) of the Texas Business and Commerce Code, a bank may pay a check that is otherwise properly payable, even though payment was made before the date of the check. If a stop payment order is given to the bank prior to the date of the check, which describes the check with reasonable certainty, then the bank may not charge against the account.

Question: How can I stop payment on a check I have written?
Answer: Under Section 4.403 of the Texas Business and Commerce Code, a customer may order their bank to stop payment of any item payable from their account, as long as the order is received at a time and in a manner sufficient to allow the bank to act on it. While some banks may accept verbal stop-payments, an order is only binding if it is in writing. An oral stop payment is only effective for 14 days, while a written stop payment is effective for six months. In both cases the exact dollar amount should be indicated.

Question: What are my rights regarding unauthorized automatic teller machine (ATM) transactions?
Answer: Under Federal Regulation E or the Electronic Funds Transfer Act, the extent of a customers liability on unauthorized ATM transactions is generally limited to the first $50 withdrawn. If however, someone whom the customer supplied the card and personal identification number to performs the transactions, then the transactions are generally considered to have been authorized. The customer is responsible for notifying the bank immediately when unauthorized transactions are discovered, which initiates an investigation by the bank.

Question: What are my rights and responsibilities when a check has been forged on my account?
Answer: Ultimately, the forging party is liable for items forged by them. However, banks do have a responsibility under Section 4.401 of the Business and Commerce Code to pay only authorized items from a customer’s account, and a forged check is not an authorized item. Most banks employ automated check processing techniques which do not verify the signature on each check to the signature on the deposit account. Under Section 4.406, the customer has a duty to discover and report unauthorized signatures or alterations with reasonable promptness. Typically, the depository contract will limit the discovery period to 30-60 days. Once reported, the bank generally must credit the item back to the account unless it can prove that the customer failed to comply with his or her discovery and reporting duties as imposed by the law. However, once a customer has notified a bank of a forgery incident, and has had at least 30 days to examine previous statements, he or she may not recover a loss on items previously forged by the same party and paid by the bank before it was notified. A customer can also be precluded from asserting against the bank if the customer was negligent in protecting his or her checks (Section 3.406).

Question: What are my rights when a check written to me was fraudulently endorsed by another party and paid?
Answer: Under the Texas Business and Commerce Code, items which are fraudulently endorsed are not legally negotiable, and should not be paid against the account of the check-writer. Section 4.401(1) codifies that a check or other item with a forged endorsement is not properly payable, since the person receiving payment has no title to the item and no right to receive the proceeds. However, the paying bank does not normally have an opportunity to ascertain the genuineness of the endorsement. Section 3.417 of the Code expresses that the responsibility lies with the bank that accepted the fraudulently endorsed item, because, under the code, the paying bank would have no knowledge that the signature of the drawer of the draft is unauthorized. Hence, the means by which a consumer may seek to recoup the misappropriated payments is to notify the writer of the check of the fraudulent endorsement, and ask them to issue another check. This means that the check writer’s bank would technically be liable for crediting the check writer’s account for the amount of the unauthorized charge. That bank would then collect under the warranty issued by the bank where the check was cashed or deposited, which in turn would seek to collect from the perpetrator.

Question: I wrote a check to pay a bill and the merchant or credit who I wrote a check to, turned my check into an ACH debit. Can they do this?
Answer: Yes, however, the merchant or creditor converting the check must give you notice that the information on your check will be used to electronically debit the payment from your account. This notice can be given at in several different ways. For example in writing on your monthly statements or at the point of purchase (register). Electronic check conversions are a one-time electronic transaction. If you have a problem with an electronic check conversion, you should contact your bank immediately.

Loans

Question: What is Mortgage Fraud?
Answer: Mortgage fraud is committed if a person intentionally or knowingly makes a materially false or misleading written statement to obtain a mortgage loan. Examples of criminal mortgage fraud includes, but is not limited to, illegally inflating property appraisals; concealing a second mortgage from a primary lender; and concealing or stealing a borrower’s identity.

The Residential Mortgage Fraud Task Force limits the definition of mortgage fraud to permanent financing of 1-4 single family residences, and excludes interim construction loans.

To report mortgage fraud please contact us by calling 877-276-5554 or complete our Mortgage Fraud Report form and submit it to our office.

Question: Does the bank have a right to set-off, i.e. to remove funds from a personal account without authorization or notification in order to bring a loan current?
Answer: Yes. Section 34.307 of the Texas Finance Code states that a bank has the right of set-off. If you have a personal account and a loan at the same banking institution, and you are delinquent in your loan payments, the bank generally has a right to access your personal account without notification to you to bring the note current. This is usually addressed in the loan agreement and/or depository contract.

Question: Are there any maximum closing costs established regarding first lien real estate loans?
Answer: No. However, there are requirements under the Federal Real Estate Settlement Procedures Act (RESPA) (12 USC Section 2601) for minimum disclosures on certain mortgage loans. This includes a Good Faith Estimate of the amount or range for each settlement charge the borrower is likely to incur no later than three (3) business days after the written loan application is received. No fee may be charged for the preparation of the Truth-in-Lending form, Uniform Settlement Statement, or the initial and annual escrow account statements. Note that second lien residential mortgages are heavily restricted.

Question: Is there a limitation on the amount of funds I can be required to escrow on a mortgage loan?
Answer: Yes. RESPA generally limits escrow funds at settlement to the amount that would bring the accrual of taxes and insurance current to the date of the first full payment plus one-sixth of the amount of such charges to be paid during the following 12 months (i.e., a two month cushion). Please see the U.S. Housing and Urban Development for more information.

Question: Are there any limits on interest rates that may be charged on loans?
Answer: All consumer loans made by Texas lenders, except federally preempted first lien real estate mortgages, are governed by state usury limits, Some credit cards issued by out of state federally chartered institutions have rates allowed by other states. Detailed information can be obtained from the Office of the Consumer Credit Commissioner.

Question: Can a bank require credit life insurance as a condition of a loan?
Answer: Yes. A bank can require the assignment of credit life insurance for a loan. But a bank cannot require that the insurance be purchased from it or any affiliate according to the federal anti-tying laws (12 USC 1972, 12 CFR 225).

Question: What are the restrictions governing loan collection practices of banks?
Answer: The following limitations are provided in various laws and regulations:

In attempting to collect money due on a loan or take possession of property securing a loan, a bank (or its agent) shall not use physical force or violence against any person or property.
A bank has the right to contact any person in order to secure information concerning a borrower. However, the bank shall not solicit the payment of any debt from any person other than the borrower, the borrower’s spouse, a member of the borrower’s household, or a co-maker, endorser, surety or guarantor of the obligation.
In attempting to collect money due on a loan or take possession of any property securing a loan, a bank commenced when in fact they have not.
A bank shall not impersonate any enforcement officer or use any fictitious name.

Any complaints regarding collection practices should be directed to the State Attorney Generals Office at (800) 621-0508.

Home Equity Loans and Lines of Credit

Additional information may be found on The Finance Commission website.

Question: How many home equity loans can I have?
Answer: A consumer can only have one home equity loan at a time.

Question: How much can I borrow?
Answer: Texans can borrow up to 80% of the value of their home.

Question: Can I refinance my home equity and when?
Answer: Yes. A home equity can be refinanced; however, it can be refinanced no more than once every 12 months and no earlier than one year after the closing of the original loan or a refinance. The terms of a home equity loan may be modified at any time.

Question: How much can I borrow on a home equity line of credit (HELOC)?
Answer: Texans may establish a line of credit of up to 80% of the value of their home.

Question: Are there limitations on the draws on a HELOC?
Answer:

The minimum amount that a consumer may draw at any one time is $4,000.
Draws are not allowed whenever the outstanding principal balance of the loan exceeds 50% of the value of the value of the home (i.e., the value of the home at the time the loan was made).
If the outstanding principal balance of a HELOC ever exceeds 50% of the value of the home (i.e., the value of the home at the time the loan was made), the consumer may pay the balance down to 50% or less of the value of the home and then make draws.
Draws are not permitted through credit card, debit card, or preprinted solicitation checks.

Dormant/Inactive Accounts

Question: How does an account become "presumed abandoned", and what happens to abandoned accounts?
Answer: Accounts identified by banks as "presumed abandoned" are subject to escheat (be remitted) to the state. Under section 73.101 of the Texas Property Code, an account is classified as abandoned when: (1) it has been inactive (without any depositor-initiated activity) for at least five years, (2) the bank is unable to identify the location of the depositor, and (3) the amount of the account or the contents of the box have not been delivered to the comptroller in accordance with Ch. 74. An account is not considered abandoned if the depositor has another account at the bank that is in "active" status.

Question: How does an account become classified as "Inactive"?
Answer: In order to keep an account in "active" status (Section 73.003(b) of the Texas Property Code), an account holder needs to make a deposit or withdrawal at least once per year. The automatic crediting of interest to the account by the bank does not count to keep the account active. The Code does not require a bank to notify the depositor when an account becomes inactive. Section 73.003(a) of the Code prohibits a bank from service charging an inactive account.

Question: Whom do I contact to claim abandoned or unclaimed funds?
Answer: The Unclaimed Property Division of the Comptroller of Public Accounts at (800) 654-3463 (as per the Texas Administrative Code Section 1134).

Miscellaneous

Question: Who has access to consumer credit reports?
Answer: The Fair Credit Reporting Act of 1970 allows credit reports to be given to only those persons who have a legitimate business need for the information. However, a person always has access to his or her own credit report and can give permission for anyone else to receive it. Complaints should be reported to the Federal Trade Commission, which enforces the Fair Credit Reporting Act.

Question: What is a check verification company?
Answer: These are companies that provide deposit account verification services to its members to assist them in identifying applicants or customers who may have a history of account mishandling. This includes, but is not limited to “bad check” writers and repeat overdrafters. Some companies offer multiple services such as check conversion, check guarantee, check verification, and collection services.

Check verification companies are subject to the Fair Credit Reporting Act. If they offer collection services, they are also subject to the Fair Debt Collection Practices Act and other laws. The Federal Trade Commission enforces these laws.

Question: Can check verification companies keep me from opening an account with a financial institution?
Answer: It is up to each individual bank and credit union to decide if they want to open an account for you. Reports submitted to these companies generally remain on their files for five years, unless the financial institution or member removes it or the company is obligated to remove it under applicable law. The decision to delete a report is up to each member or subscriber and their individual policies. A member is under no obligation to remove accurate report of account mishandling due to payment. If an amount is collected, the member is obligate to report that payment has been made.

Money Services Businesses

Question: Which money services businesses activities does the Banking Department regulate?
Answer: The Banking Department regulates the following money services activities conducted by “money services businesses” or “MSBs”, if they are being offered in Texas (regardless of whether the business has a physical presence in Texas):

Currency Exchange
Money Transmission (includes "in-person" and "internet" transactions)
Currency Transportation
Money Orders
Travelers Checks
Third-Party Bill Paying
Gift Cards (in open systems)
Stored Value Products (not issued by insured financial institutions).

Question: Under what law or laws does the Banking Department regulate money services businesses?
Answer: The Banking Department regulates money services businesses under Chapter 151 of the Texas Finance Code and the title of this regulation is the Money Services Act. In addition, Chapter 33 (formerly Chapters 4 and 29) of the Texas Administrative Code is also applicable to MSBs regulated by the Banking Department.

To engage solely in currency exchange, you must obtain a Currency Exchange License. To engage in any of the other money services activities regulated by the Banking Department, including currency exchange, you must obtain a Money Transmission License.

Question: Does the Banking Department regulate check cashers?
Answer: No, check cashers are not regulated in Texas. Any complaints about a check casher in Texas should be directed to the Attorney General's Office. For further information contact:

Texas Association of Check Cashers
Attn: John Templer
P.O. Box 9878
Amarillo, TX 79105

Question: I cashed a money order for someone and it was charged back to my bank account "payment stopped." How can I get my money?
Answer: File a written complaint with the Texas Department of Banking.

Question: Are sellers of mall gift certificates or gift cards required to be licensed?
Answer: A license is required if the certificates or gift cards are sold by a third party for the benefit of the mall retailers. Gift certificates and gift cards are considered to be stored value products for licensing purposes.

Question: Does the Department regulate the fees charged for a currency exchange or currency transmission transaction?
Answer: No, Chapter 151 of the Texas Finance Code does not contain any provision regarding fee setting.

Question: I want to offer wire transmission services as an agent of Western Union or MoneyGram. Do I need a currency transmission license from the Department?
Answer: No, you will be considered an authorized delegate (agent) for either Western Union or MoneyGram. As an authorized delegate of a license holder such as Western Union or MoneyGram, you do not need a license from the Department for the activities covered by the authorized delegate agreement. However, if you are also offering other Department-regulated money services business activities not covered in your authorized delegate agreement with either Western Union or MoneyGram, you would need a license from the Department. For example, if in addition to being a Western Union and MoneyGram agent you also offer currency exchange services on your own, you would need a Currency Exchange License from the Department of Banking.

Question: What are some of the basic requirements if I want to apply for a license under Chapter 151 of the Finance Code?
Answer:

Submit a current financial statement. Audited financial statement if applying for a Money Transmission License. The financial statement must show a net worth of at least $500,000 for a Money Transmission License.
Minimum security of at least $300,000 in the form of a Money Services Bond, Letter of Credit, or Deposit in Lieu of Bond if applying for a Money Transmission License. For a Currency Exchange License, the amount of the security is $2,500.
Full background information on the applicant and its principals; see Section 151.202(b) of the Code.
The completed application form with all required exhibits.
Filing fee.

Look on the website under Application Forms, for complete information on filing requirements.

Question: What recent federal regulations impact my application?
Answer: Applicants must demonstrate compliance with Title 31 CFR Part 103 regarding anti money laundering programs and the registration of money service businesses. See FinCEN.

Perpetual Care Cemeteries

Question: Do private or family cemeteries fall under the jurisdiction of the Texas Department of Banking?
Answer: No. To establish a cemetery however, you must follow Sections 711.003, 711.008, 711.034, 714.001, and 711.041 of the Texas Health and Safety Code. It is also advised to contact your local county/city government to see if they have any rules or regulations regarding the property. This could include restrictions such as flood plains, drainage, underground cabling, deed restrictions, etc. More information can be found on the Texas Funeral Services Commission’s website.

Question: Can I bury on my own property?
Answer: Yes. Contact your local health department for more information.

Question: Does perpetual care cover markers?
Answer: No, in Texas the perpetual care fee only covers the cemetery grounds and mausoleums. Markers are not covered. Cemeteries frequently have a separate care fund for markers but it is not required by statute or regulated by this Department.

Question: Can I cancel a cemetery contract?
Answer: The statute does not provide for mandatory cancellation provisions. In most instances, the cemetery will not allow the purchaser to cancel a contract and thus no refund options are available.

Question: Are the prices and fees cemeteries charge regulated by the Texas Department of Banking?
Answer: No, there is no price regulation in the cemetery industry.

Question: Do I have to purchase an outer burial container?
Answer: If the cemetery's rules and regulations require the use of an outer burial container you must have one for burial. It is a decision made by the individual cemetery.

Question: What is a lawn crypt?
Answer: A lawn crypt is a subsurface burial container installed in multiple units that has a system for drainage and moisture control. Lawn crypts may only be sold in dedicated lawn crypt gardens.

Question: Are perpetual care cemeteries required to build a mausoleum within a specific time period?
Answer: Yes, a perpetual care cemetery must begin construction of a mausoleum on or before a date that is 48 months after the date of the first pre-developed sale and shall complete construction on or before a date that is 60 months after the date of the first pre-developed sale.

Prepaid Funeral Benefit Contracts

Additional information may be found on the prepaid funeral benefits contracts website.

Trust Companies

	Regulation \| Good Financial Standing
	Self Directed IRA \| Miscellaneous

Regulation

Question: How are state-chartered trust companies regulated?
Answer: The Texas Department of Banking conducts an annual examination of these entities.

Good Financial Standing

Question: How do I know if a trust company is in good "standing"?
Answer: Examination ratings are confidential information; however, a trust company’s minimum capital requirement is $1 million. This can be compared to financial statements for a better understanding of the trust company’s financial standing.

Question: Can I access a state-chartered trust company’s financial information?
Answer: Yes. If we regulate the trust company, you can request a copy of the trust company’s financial statements. To do so, contact our Public Information Administrator.

Self-Directed IRA

Question: What is a Self-Directed Individual Retirement Account (IRA)?
Answer: A self-directed IRA is an account where the investor establishes and contributes to the account. The investor makes all of the decisions with respect to the investment and the assets held in the account. Remember that an IRA is a type of tax deferred savings plan and the Internal Revenue Code applies. If you wish to find more information concerning tax issues, contact the Internal Revenue Service.

Question: What are the responsibilities for the trust company and for me concerning a Self-Directed IRA?
Answer: A self-directed IRA can be set up as either a trust or custodial account. The language used in the Agreement, made between you and the trust company, determines the responsibilities for each party. The agreement should specify what each party agrees to do in respect to the investment and/or assets in the account. You should read your Agreement carefully to determine your responsibility concerning your IRA.

Miscellaneous

Question: Are trust companies insured by the FDIC?
Answer: No

Private Child Support Enforcement Agencies

Question: Are child support enforcement agencies that are registered with the Texas Department of Banking considered government agencies of the State of Texas?
Answer: No. The agencies registered with our office are individuals or nongovernmental entities that engage in the enforcement of child support ordered by a court or other tribunal for a fee or other consideration. The official child support enforcement agency for the State of Texas is the Office of the Attorney General.

Question: Are all obligees and obligors protected by the Texas Finance Code and Texas Administrative Code?
Answer: The Department’s interpretation of the law is that it only applies to obligees and obligors that were Texas residents at the time the contract was executed. As situations change, the obligor and obligee may not be protected by the statute. For example, if the obligor subsequently moves out-of-state, they are no longer protected by the statute. However, if the obligee moves out-of-state, they continue to be protected by the statute. If both parties were not a resident at the time the contract was executed and neither party lives in Texas, the statute does not apply. In this scenario, the obligor or obligee must contact their own state for information regarding the laws that govern child support and child support enforcement agencies operating in their state.

Question: Does the Department regulate PCSEA contracts?
Answer: No. The Department only reviews contracts for clear language. Prior to signing a contract with the PCSEA, it is the client’s responsibility to read the contract in its entirety in order to understand all terms and conditions. Upon signing, the client is bound to the contract. Any further negotiations or changes to the contact will need to be addressed with the PCSEA.

Question: Can the Department help me terminate my contract with the PCSEA?
Answer: As a general rule, no. The Department of Banking does not intervene in contractual disputes or terminations of contracts. If the client has problems with the terms or would like to terminate the contract, it is best to consult legal counsel. In general, most contracts contain a provision that allows a client to terminate the contract within a set number of days upon signing. Once this timeframe has expired, the contract cannot be terminated unless the contract explicitly contains a termination provision. In cases where provisions exist, the client must meet the termination criteria listed within the contract. Example of termination criteria are:

PCSEA is unable to fulfill contract within established timeframe;
custodial parent has not received a child support payment within set amount of months; or
the full child obligation has been paid.

Question: How do I know if my contract is in clear language?
Answer: As designated in the Texas Administrative Code Title 7, §31.14 PCSEA contracting with clients who are Texas residents at the time the contract is executed, must be written in clear language. Generally, the contract is not in clear language if:

over 20% of its sentences are passive in structure;
the average sentence length exceeds 19 words;
the Flesch Reading ease score is less than 49.0; and
the Flesch-Kincaid grade level score is higher than 10.5.

Question: At what age does child support no longer accumulate as determined by state law?
Answer: In Texas a court may order that support be paid for a child

until the child is 18 years old or until after graduation of high school, which ever occurs later;
until the child is emancipated through marriage;
until death of the child; or
if the child is disabled for an indefinite period.

Question: Is there a statute of limitations for the collection of past due child support?
Answer: There is no statute of limitations. A child support obligation must be paid in full.

Question: What percentage of the obligor’s monthly net resources is used to determine child support payments?
Answer: Per Texas Family Code §154.125, guidelines for the support of a child are specifically designed to apply to situations in which the obligor's monthly net resources are $6,000 or less. If the obligor's monthly net resources are $6,000 or less, the court shall presumptively apply the following schedule in rendering the child support order.

Child Support Guidelines Based On The Monthly Net Resources Of The Obligor
1 child	20% of Obligor's Net Resources
2 children	25% of Obligor's Net Resources
3 children	30% of Obligor's Net Resources
4 children	35% of Obligor's Net Resources
5 children	40% of Obligor's Net Resources
6+ children	Not less than the amount for 5 children

If the obligor's net resources exceed $6,000 per month, the court shall presumptively apply the percentage guidelines to the first $6,000 of the obligor's net resources. Without further reference to the percentage recommended by these guidelines, the court may also order additional amounts of child support as appropriate, depending on the income of the parties and the proven needs of the child.

Question: What triggers a filing of a lien?
Answer: Any amount of past due child support balance can trigger a property lien. These are usually filed in the county where the real property is located or delivered to the asset holder (obligor).

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