(1) A payday lender and a borrower may agree to a payment plan for a payday loan at any time.

(2) A payday lender shall disclose to each borrower that a payment plan described in this section is available to the borrower after the maximum amount of renewals allowed by state law. The payday lender shall disclose this requirement to the borrower in a minimum of bold 12 point type.

(3) After a payday loan has been renewed to the maximum amount allowed by state law, and prior to default on the payday loan, a payday lender shall allow a borrower to convert the borrower’s payday loan into a payment plan. Each payment plan shall be in writing and acknowledged by both the payday lender and the borrower.

(4) The payday lender shall not assess any fee, interest charge or other charge to the borrower as a result of converting the payday loan into a payment plan.

(5) The payment plan shall provide for the payment of the total of payments due on the payday loan over a period of no fewer than 60 days in three or more payments. The borrower may pay the total of payments due on the payment plan at any time. The payday lender may not assess any penalty, fee or other charge to the borrower for early payment on the payment plan.

(6) A payday lender’s violation of the terms of a payment plan entered into with a borrower under this section constitutes a violation of sections 3.550 through 3.560 of this code. If a payday lender enters into a payment plan with a borrower through a third party that is representing the borrower, the payday lender’s failure to comply with the terms of that payment plan constitutes a violation of sections 3.550 through 3.560 of this code.