Payday loans in Texas
In Texas, licensed credit access businesses arrange payday loans from third-party lenders and charge separate fees under Finance Code chapter 393.
- Payday lending
- Allowed
- Max cost
- None in the law
- Top amount
- State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan).
Are payday loans legal in Texas?
Under the Texas Credit Services Organizations Act within Finance Code chapter 393, payday loans are indeed available in Texas. While state law places no cap on payday fees, Chapter 342 consumer loans permit an annual add-on interest charge of $18 per $100 for the initial bracket. Loan sizes and renewals also have no limit set by state law. Houston shows how some cities add local limits. Loans cannot pass 20 percent of monthly gross income; lump-sum renewals stop at three, and installment plans end at four payments.
In the Texas broker model, a licensed credit access business arranges the loan while an unlicensed third-party lender provides it. You get credit through this credit services organization, which charges a fee that is usually a percentage of the loan. Evading the law is prohibited, and any company arranging title or payday loans while you are in Texas must hold this license. Before your broker charges you, ensure they are licensed and disclose fees, and submit any complaints to the Texas Office of Consumer Credit Commissioner.
- In the Texas broker model, a licensed credit access business (CAB) handles loan arrangement while the third-party lender remains unlicensed.
- CAB fees have no cap in state law and are whatever the parties agree to, provided they are disclosed.
- H.B. started CAB licensing on January 1, 2012. 2594 (2011).
- Local rules fill the gap: Houston's ordinance caps payday loans at 20% of gross monthly income, effective July 1, 2014.
- Houston's ordinance caps lump-sum loans at three renewals and installment payday loans at four payments.
Texas payday loan laws
- Law in force
- Subchapter G (credit access businesses) of the Texas Credit Services Organizations Act
- Cited as
- Tex. Fin. Code 393.601 through 393.628
- Fees under the law
- Fees for services may be assessed by a credit access business as the parties agree.
- Most you can borrow
- State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan).
- Rollovers
- No limit appears in state law; however, the Houston ordinance permits renewing lump-sum loans no more than three times.
- Installment lending limits
- Chapter 342 consumer loans feature add-on interest at $18 per $100 yearly for the first bracket and $8 per $100 yearly for the following bracket (Tex. Fin. Code section 342.201(a))
Also checked against occc.texas.gov. Full statute text.
Online lenders that list Texas
Twelve companies we track say they lend in Texas: 4 online installment lenders, 1 store and online lender, 6 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Fig Loans | Installment | 190% to 279% |
 Rise Credit | Installment | 60% to 299% |
 ACE Cash Express | Store and online | 122.4% to 769.1% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Texas
Evading the subchapter through device or pretense is forbidden, and Texas requires a credit access business license whenever a company arranges title or payday loans for a consumer in Texas at transaction time.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Texas as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Texas
Texas and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Texas | Allowed | None in the law | State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan). |
| Arkansas | Banned | 17% APR | None allowed |
| Louisiana | Allowed | $20.12 per $100 borrowed | $700 is the deferred presentment amount paid to the borrower, and $350 is the small loan amount. For September 1, 2026 to August 31, 2027, OFI's CPI-adjusted maximum for outstanding principal is $740 and $370 respectively. |
| New Mexico | Banned | 36% APR | None allowed |
| Oklahoma | Only as installments | None in the law | Across all licensees, one borrower’s outstanding principal from small loans is limited to $1,500 and moves with CPI every other year. Payments due each month may not exceed 20% of monthly income before deductions. |
Texas loans with no credit check
Installment loan rates: Chapter 342 consumer loans feature add-on interest at $18 per $100 yearly for the first bracket and $8 per $100 yearly for the following bracket (Tex. Fin. Code section 342.201(a)).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Texas
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Texas Office of Consumer Credit Commissioner (OCCC).
- Had trouble with a lender? Report the lender.
Sources for Texas
- Payday or title loans are arranged by a credit access business, which is a credit services organization.; No statutory ceiling exists for CAB fees, which are set by agreement.; Disclosure is required before fees can be charged.statutes.capitol.texas.gov
- OCCC notes the third-party lender lacks a license, while the CAB broker holds one.; A percentage of the loan amount is usually how the CAB fee is calculated.occc.texas.gov
- On the first bracket, Chapter 342 consumer loans permit add-on interest of $18 per $100 each year.statutes.capitol.texas.gov
- July 1, 2014 was when Houston's ordinance took effect.; In Houston, 20% of gross monthly income is the maximum for a payday loan.; Houston allows lump-sum loans to be renewed no more than three times.houstontx.gov
- Complaints about businesses offering payday and auto title loans are handled by OCCC.occc.texas.gov