State Law Guide - Updated January 2026
Texas Lease Return Dispute Rights
Under Texas Property Code, Texas gives you the right to cancel and receive refunds on F&I products.
Quick Answer
In Texas, you can cancel dealer add-on products at any time. You can sue in Small Claims Court for up to $20,000.
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Key Texas Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Written Standards | Must be provided | Lessor must provide written wear standards |
| Itemized Statement | Required | Must receive detailed breakdown of charges |
| Credit Card Test | Industry standard | Minor damage under 2" is normal wear |
| Independent Appraisal | Your right | Can obtain independent appraisal |
| Small Claims | Up to $20,000 | Texas has high small claims limit |
Written Standards
Must be providedItemized Statement
RequiredCredit Card Test
Industry standardIndependent Appraisal
Your rightSmall Claims
Up to $20,000What Texas Law Requires
Your Cancellation Rights
Under Texas Property Code, Texas consumers have the right to cancel F&I products purchased from dealers.After this period, you're still entitled to a pro-rata refund based on unused time or mileage.
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Dispute Letter
Cites Regulation M & OEM guides
Credit Card Test Analysis
Industry-standard defense
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Average $1,200 disputed
$29 - Avg Texas refund: $1,700 - Potential 58x return
Frequently Asked Questions
Does Texas require written wear standards?
Yes. Under Texas law and federal Regulation M, lessors must provide written standards for what constitutes excess wear at the beginning of your lease. If they didn't, their ability to charge is limited.
What is the Credit Card Test in Texas?
The Credit Card Test is an industry-accepted standard: scratches, dents, and damage that can be covered by a standard credit card (~2 inches) are considered normal wear and tear, not billable damage.
Can I take my lease dispute to Texas Small Claims Court?
Yes. Texas has one of the highest small claims limits at $20,000, making it practical to dispute even substantial excess wear charges without hiring an attorney.
Where do I complain about unfair lease charges in Texas?
File complaints with the Texas Department of Motor Vehicles or the Texas Attorney General Consumer Protection Division.
Texas Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
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Based on Texas Property Code