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 |
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% |
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 |
|---|
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.