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✓ Legal & RegulatedReviewed: 2025-08

TexasLoan Laws & Regulations

Official regulatory reference for borrowers and lenders in Texas. Includes permitted loan types, APR caps, lender licensing requirements, borrower rights, and government source links.

Max Loan
None (Based on income)
Typical APR
390% - 660% APR
Max Term
31 days
Legal Status
Legal & Regulated
Payday LoansPersonal LoansCash AdvanceInstallment LoansBad Credit LoansSame-Day LoansNo Credit Check Loans

Texas Lending Regulator

Primary Regulator
Texas Office of Consumer Credit Commissioner
https://occc.texas.gov/

The Texas Office of Consumer Credit Commissioner oversees consumer lending in Texas, including licensing, enforcement, and consumer complaint resolution. Before borrowing from any lender, verify their license using the official regulator lookup tool linked above.

Loan Types Permitted in Texas

  • Payday loans (via Credit Access Businesses)
  • Installment loans
  • Personal loans
  • Auto title loans

APR & Fee Rules

APR Cap
None (CAB fees are unregulated; effective APR often 300%–660%)
Fee Rule
No statutory fee cap. Lenders charge via a Credit Access Business (CAB) fee model. A $500 loan for 14 days typically carries $75–$100 in fees.
Loan Term
7 days minimum — no maximum
Max Loan Amount
No statutory cap (based on borrower income; typically $1,500 or less for short-term)
Rollover / Renewal Rules
Allowed, but the City of Austin, Dallas, Houston, and San Antonio have local ordinances limiting rollovers and requiring installment repayment.
Representative Example
A $500 loan for 14 days in TX may incur fees of $100-$150. Representative APR: 521%.

Lender Licensing Requirements

Credit Access Businesses must register with the Texas Office of Consumer Credit Commissioner (OCCC). Direct lenders making non-CAB personal loans need a separate OCCC license.

How to verify a lender is licensed:

Visit the Texas Office of Consumer Credit Commissioner's license lookup tool at https://occc.texas.gov/ and search by company name or NMLS ID. Never borrow from an unlicensed lender.

Required Lender Disclosures

Under Texas law, any licensed lender must provide the following disclosures before you sign:

  • →Written loan agreement with total repayment amount before signing
  • →APR and finance charge disclosure in dollar terms
  • →Lender's OCCC registration number
  • →Information about non-profit credit counseling options

Your Borrower Rights in Texas

  • Right to a written contract before signing any loan agreement
  • Right to repay the loan early without a prepayment penalty
  • Right to file a complaint with the Texas OCCC at (800) 538-1579
  • Protection against debt collection practices that violate the Texas Debt Collection Act
  • Local ordinances in major cities provide additional limits on loan amounts and rollovers

Payday Loan Alternatives in Texas

  • ✓Personal installment loans from OCCC-licensed lenders (lower APR)
  • ✓Texas Credit Union emergency loan programs
  • ✓Texas Health and Human Services emergency assistance programs
  • ✓Non-profit credit counseling via NFCC member agencies

PrimeLendings connects you with licensed lenders offering personal loans in Texas — typically with lower APRs than payday products. View personal loan options in Texas →

Texas Lending FAQ

Are payday loans legal in Texas?▼
Yes. Payday loans are legal and regulated in Texas under the oversight of the Texas Office of Consumer Credit Commissioner. Current APR range: 390% - 660% APR. Maximum loan: None (Based on income).
What is the maximum payday loan I can get in Texas?▼
The maximum short-term loan amount in Texas is None (Based on income). A $500 loan for 14 days in TX may incur fees of $100-$150. Representative APR: 521%.
Who regulates payday lenders in Texas?▼
The Texas Office of Consumer Credit Commissioner is the primary state regulator. You can verify any lender's license at https://occc.texas.gov/. Unlicensed lenders operating in Texas are illegal — always verify before borrowing.
What are the alternatives to payday loans in Texas?▼
Personal installment loans from OCCC-licensed lenders (lower APR); Texas Credit Union emergency loan programs; Texas Health and Human Services emergency assistance programs; Non-profit credit counseling via NFCC member agencies

Official Government Sources

Source data verified from official government and regulatory publications. Last reviewed: 2025-08. Laws change — verify current requirements directly with the Texas Office of Consumer Credit Commissioner before relying on this information.