Permitted Regulated Verified 2026-09-06 · ver. 0.2.3 How we verify these rules

Payday Loans in Texas

Texas permits payday loans primarily through the Credit Access Business model. A licensed CAB arranges a deferred presentment loan from an independent third-party lender and charges a separate service fee; statewide law requires licensing and disclosures but does not impose one statewide cap on the CAB fee.

Texas legal category: Deferred Presentment Transaction arranged by a Credit Access Business · Texas Finance Code Chapter 393; OCCC rules in 7 Texas Administrative Code Chapter 83

Texas payday loans at a glance

Legal status
Permitted Regulated
Legal category
Deferred Presentment Transaction arranged by a Credit Access Business
Maximum amount in this regime
Texas does not impose one statewide maximum loan amount on the CAB payday-loan structure. The OCCC’s 2025 market study describes no statewide maximum and reports that these loans are typically about $400–$1,200. A city ordinance can impose additional limits where applicable.
Term
3–180 days
Regulator
Texas Office of Consumer Credit Commissioner (OCCC)
Verified
2026-09-06

Choose a loan type by amount

PLS Cash Advance currently presents request amounts from $200 to $5,000. The ranges below are navigation guidance between our state loan guides — not statutory limits, eligibility rules, or a promise of approval.

$200–$1,000 Current guide

Payday Loans in Texas

Preferred site routing for smaller short-term requests. This $1,000 breakpoint is an editorial routing choice, not a Texas statewide CAB loan maximum.

$1,000–$5,000

Installment Loans in Texas

Preferred site routing for larger multi-payment requests. Texas Chapter 342 contains several installment-loan structures, including structures that can cover amounts in this range.

See Installment Loans

Amount and term limits

Texas does not impose one statewide maximum loan amount on the CAB payday-loan structure. The OCCC’s 2025 market study describes no statewide maximum and reports that these loans are typically about $400–$1,200. A city ordinance can impose additional limits where applicable.

The OCCC’s current market study describes CAB agreement terms from about 3 days up to 180 days, with the agreement limited to 180 days or less. Local ordinances can impose additional restrictions.

Interest, fees and repayment

Texas separates the third-party lender’s loan charge from the CAB’s broker/service fee. Because the CAB fee is not capped by one statewide percentage or dollar ceiling, there is no single statutory maximum-cost formula comparable to Florida’s payday regime.

Texas Finance Code §393.602 allows a CAB to assess service fees as agreed by the parties, provided the fees are disclosed. The OCCC describes CAB broker fees as not subject to a statewide maximum; the independent third-party lender’s interest is generally 10% or less.

A Texas deferred presentment transaction may be structured as a single-payment or multiple-payment loan. OCCC disclosures exist for both structures. Refinancing or renewal can add additional charges.

Rollovers, refinancing and early payment

Rollover allowed?
Not reduced to a yes/no rule
Texas does not reduce CAB refinancing to one statewide rollover limit. Renewals and refinancings occur under the statewide CAB framework, while some municipalities impose additional restrictions on renewals or installment structures.
Prepayment penalty allowed?
No
OCCC consumer-loan studies describe prepayment as allowed without a prepayment penalty, although CAB fees may be nonrefundable depending on the agreement.

Texas borrower protections

  • The CAB contract must identify the lender, disclose the interest paid to the lender, and disclose the specific fees paid to the CAB.
  • A CAB must post its fee schedule and provide the OCCC-prescribed transaction cost disclosure before performing the service.
  • Chapter 393 gives the buyer a right to cancel the credit-services contract before midnight of the third day after the transaction, subject to the statutory notice procedure.
  • Municipal payday/title-loan ordinances may impose additional local restrictions, so city-level rules should be checked when relevant.

Texas loan cost calculator

Why there is no single statutory calculator: Texas state law does not set one maximum CAB broker fee. The borrower must use the actual fee schedule and transaction disclosure for a particular CAB, and local city rules may also change the permitted structure. A generic “maximum legal cost” calculator would therefore create false precision.

How to verify a lender in Texas

Regulator: Texas Office of Consumer Credit Commissioner (OCCC).

Credit Access Business (CAB) license under Texas Finance Code Chapter 393, administered by the OCCC

Verify a lender license

Official sources

  1. Texas Finance Code Chapter 393 — Credit Services Organizations · primary
  2. Texas OCCC — Credit Access Businesses · primary
  3. Texas OCCC — 2025 Study of Consumer Loan Products (Credit Access Businesses) · primary
  4. Texas OCCC — Credit Access Business Advisory Bulletins & Cost Disclosures · primary
  5. Texas OCCC — Licensee Search · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.