Consumer protections, interest rate limits, and safer borrowing alternatives
This guide provides general information about payday loan regulations in Texas. Laws and regulations can change. For the most current information, contact the Texas Department of Financial Institutions, Attorney General's Office, or a qualified legal professional.
Payday loans are short-term, high-interest loans typically due on your next payday. In Texas, these loans are regulated by state law to protect consumers from predatory lending practices. Understanding your rights and the regulations governing payday loans can help you make informed borrowing decisions.
Texas has established specific rules regarding maximum loan amounts, interest rates, fees, repayment terms, and rollover restrictions. These regulations are designed to prevent borrowers from becoming trapped in cycles of debt.
No statutory cap (set by lender/CAB; local city ordinances may limit)
Texas sets specific limits on payday loan amounts to prevent excessive debt burdens on borrowers.
No state cap on CAB fees; lender interest tied to Fin. Code 342 but CAB fees uncapped
Finance charges: Credit Access Business (CAB) charges an uncapped fee for arranging/guaranteeing the loan from a third-party lender. Effective APRs commonly very high. Military borrowers protected by 10 U.S.C. 987 (36% MAPR).. Understanding these limits helps you identify predatory lenders.
Min: Varies by loan type / Max: Varies (single-payment to multi-installment)
Texas specifies these loan term limits. Longer repayment periods can help reduce the financial burden.
None at state level (some city ordinances impose limits)
Statute of limitations: 4 years for written contracts/debt (Tex. Civ. Prac. & Rem. Code 16.004). Texas has regulations to prevent borrowers from becoming trapped in cycles of debt.
As a payday loan borrower in Texas, you have important rights:
Before taking out a payday loan, consider these safer, more affordable alternatives available in Texas:
If you have questions about payday loan regulations or need to file a complaint, contact these Texas agencies:
Payday loans are regulated in Texas. The maximum loan amount is No statutory cap (set by lender/CAB; local city ordinances may limit) with interest rates of No state cap on CAB fees; lender interest tied to Fin. Code 342 but CAB fees uncapped. The Texas Office of Consumer Credit Commissioner (OCCC) oversees payday lending in the state. All payday lenders must be licensed and comply with state regulations.
In Texas, the maximum interest rate for payday loans is No state cap on CAB fees; lender interest tied to Fin. Code 342 but CAB fees uncapped. Finance charges are Credit Access Business (CAB) charges an uncapped fee for arranging/guaranteeing the loan from a third-party lender. Effective APRs commonly very high. Military borrowers protected by 10 U.S.C. 987 (36% MAPR).. Contact the Texas Office of Consumer Credit Commissioner (OCCC) for the most current rate information.
Many states, including Texas, have restrictions on the number of payday loans you can have simultaneously. Some states use database systems to track outstanding loans and prevent multiple concurrent loans. Check your state's specific regulations or consult with a financial advisor.
Safer alternatives include credit union Payday Alternative Loans (PALs) with APRs capped at 28%, personal installment loans with longer repayment terms, payment plans negotiated with creditors, emergency assistance programs from local nonprofits, employer cash advances, and side income from gig work.
You can file complaints with the Texas Department of Financial Institutions, the Texas Attorney General's Office, or the federal Consumer Financial Protection Bureau (CFPB). Document all interactions with the lender, keep copies of loan agreements, and gather evidence of any violations before filing your complaint.
This information is provided for educational purposes only and does not constitute legal advice. Payday loan laws and regulations in Texas are subject to change. For the most current information about Texas payday loan regulations, consult with a qualified attorney, contact your state's regulatory agencies, or visit official government websites. Fast Fair Loans is not a lender and does not provide legal advice.