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Regulator Details

Texas Office of Consumer Credit Commissioner

2601 N. Lamar Blvd.
Austin, TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610

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Texas Short Term Loan Laws

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Texas Payday Loan Laws Details

The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Texas payday loan laws contact the Texas Office of Consumer Credit Commissioner.

Payday loans are legal in Texas (see Texas Payday Loans or Texas Installment Loans to compare fees and requirements for individual lenders).

Feature Specification
Amount (max) Not specified
Rates or Fees (max) May not exceed rates authorized in Tex. Fin. Code §§ 342.251-342.259. 7 Tex. Admin Code § 83.604 provides a chart stating that maximum APRs for payday loans range from 83.43% for a 30-day, $350 loan to 569.92% for a 7-day, $100 loan.
Term Limitations 7-31 days
General Loan Terms

In Texas, no rollovers are permitted (if renewal charge is less than maximum interest rate then renewals are permitted otherwise loan must convert to declining balance installment note). Nothing is mentioned about cooling periods between loans. Texas has no requirements for extended repayment plans.

For example, in Texas the rates and fees on a 14 day, $100 loan are:

Terms Amount
Loan Amount $100
Fees $11.87
APR 309.47%
Sample Loan Terms

Texas also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.

Feature Specification
Regulations on Collections
Finally, a more detailed excerpt from Texas's statutes on finance charges is listed below. In general the tables above summarize this.

A deferred deposit lender that engages in a deferred deposit loan may not collect additional interest on a deferred deposit loan with an outstanding principal balance 10 weeks after the day on which the deferred deposit loan is executed.

Citation: 7 Tex. Admin. Code Section 83.604; 4 Tex. Fin. Code Sections 342.251 et seq., Sections 342.601 et seq. and 2011 Chapters 1301 and 1302.