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Pre-suit Notice by the Creditor in Texas

Section 305.103 of the Texas Finance Code, states:

(a) A creditor is not liable to an obligor for a violation of this subtitle if:

(1) not later than the 60th day after the date the creditor actually discovered the violation, the creditor corrects the violation as to that obligor by taking any necessary action and making any necessary adjustment, including the payment of interest on a refund, if any, at the applicable rate provided for in the contract of the parties; and

(2) the creditor gives written notice to the obligor of the violation before the obligor gives written notice of the violation or files an action alleging the violation. TEX. FIN. CODE ANN. § 305.103 (Vernon 2006) .

In In re CPDC, Inc., 337 F.3d 436 (5th Cir. 2003), the court decided that a pre-suit notice sent by the creditor, which informed the debtor that the interest it charged was usurious and renegotiated the interest, renounced any right to receive usurious interest and was thus sufficient to cure the violation. Id. at 439, 446.