In Texas, Payday Loans Laws are clear, and payday lenders are considered legal. But the lenders have certain limits on interest and amounts they can lend at a single time. 
•The Term of a Payday Loan: 7 – 31 days
•The Maximum Rate of Finance and Fees: 48% rate of interest (annually) plus $10 per loan
•Finance Charges on a $100 loan for a 14-day period: – $11.87
•And the APR for a $100 loan for a 14-day period: 309%
Texas Payday Loan Laws For Military Personnel
S.B. 1479 protects its military members and their families from certain actions regarding payday lenders. Additionally, it mandates payday lenders must make special disclosures to military borrowers.
And, the laws in Texas also require all internet lenders to be licensed. If they are indeed licensed in the state, they must abide by Texas state laws.
Subsequently, Texas does allow Credit Service Organizations (CSO) to lend money to its residents, though and is not subject to the laws listed above.
A Credit Service Organization is defined as:
(a) A credit services organization is a firm that, concerning the extension of credit by others and in return for the payment of money or other valuable consideration, provides or represents that the person
can or will provide any of the following services:
(1) Improving a buyer’s credit record, history, or rating;
(2) Obtaining an extension of credit for a buyer; or
(3) Providing advice or assistance to a buyer concerning paragraph (1) or (2) of this subsection.
How do TX Payday Loan Laws Pertain To You?
The state of Texas definitely protects its citizens regarding Payday loan laws. But some lenders try to bypass these laws, and if a client isn’t aware, they can end up paying more than they have to.
If you would like more information on how these laws work and how they pertain to your situation, please fill out the form to the right, and we will rush you a free quote. We are the premier payday loan consolidation firm in Texas.
