Texas Payday Loans

7 Tex. Admin. Code § 83.604; 4 Tex. Fin. Code §§ 342.251 et seq. and §§ 342.601 et seq.
Status: Legal

Payday loans are legal in the state of Texas, pursuant to 7 Tex. Admin. Code § 83.604; 4 Tex. Fin. Code §§ 342.251 et seq. and §§ 342.601 et seq. The number of companies offering payday loans in Texas has grown substantially in the last 10 years, up from 1,303 in in 2004 to 2,532 in 2015. All a consumer needs to get a payday loan in Texas is an open bank account in relatively good standing, a steady source of income, and identification. Loan applications can be processed both in-store and online. Lenders do not conduct a full credit check during the application process. Payday loans are secured by access to a borrower’s bank account via a post-dated check or electronic Automated Clearing House authorization. The initial term is typically two weeks to one month, with the term usually determined based on the borrower’s pay cycle. 8 percent of state residents have used payday loans, and the annual interest rates on payday loans in Texas are the second-highest in the nation behind Ohio.

Payday Loan Lending Laws in Texas

Texas has one of the most complex statutes regarding payday loans and requires all consumers that take out loans to be made fully aware of all of the risks that come with them. The lender is required to explain to a borrower what all of the costs are, what the interest rate is, and how much the interest rate could accumulate over time. 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. The maximum finance rates and fees may not exceed rates authorized in Tex. Fin. Code §§ 342.251-342.259. Every loan comes with a 72-hour satisfaction guarantee; if a borrower changes their mind about the loan, the can return the principal within 72 hours and pay nothing more.

Lending Rules*

Lenders in the state of Texas are legally required to comply by the following limitations according to 7 Tex. Admin. Code § 83.604; 4 Tex. Fin. Code §§ 342.251 et seq. and §§ 342.601 et seq.:

Maximum Loan Amount:
Not specified
Minimum Length of Loan:
7 days
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
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.
Finance Charge for 14-day $100 Loan:
$11.87
APR for 14-day $100 Loan:
309.47%
Max # Outstanding Loans at One Time:
Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted:
None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Collection Fees:
Not Specified
Criminal Action:
Not Specified
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/51.

Regulatory Information

If you have a complaint against a Texas Cash Advance location you can contact your state regulator below:

Regulator:
Texas Office of Consumer Credit Commissioner
Address:
2601 N. Lamar Blvd., Austin, TX 78705
Phone:
(512) 936-7600
Fax:
(512) 936-7610
Website:

The Texas Office of Consumer Credit Commissioner states an advance of money obtained through a payday loan is not intended to meet long-term financial needs. A payday loan should only be used to meet immediate short-term cash needs. Refinancing the loan rather than paying the debt in full when due will require the payment of additional charges.

Texas Lenders

Below you can find Texas payday loan lenders in the following cities:

Texas Statistics**

The following information is key demographic data for the state of Texas from the Census bureau.

Total Population:
27,862,596
Median Household Income:
$53,207
Poverty Rate:
15.9%
Median Gross Rent:
$882
High School Graduate or Higher:
81.9%
Bachelor's Degree or Higher:
27.6%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

Due to the complexity of the state statutes regarding payday loans and the high APR in the state of Texas, it is in the potential borrower’s best interest to understand all terms and conditions on the loan according to the regulations. Payday loans are, by design, supposed to be short term loans to meet the borrower’s financial obligations until the next paycheck. To avoid high interest payments, paying off the loan in full within the set time frame is highly recommended.

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