Texas Loan Amount
Nowadays, there is no regulation about the maximum amount of money that one can borrow from Texas payday loan lenders.
Texas Rates, Fees, and Other Charges
There is no maximum fee for the financing aspect with the APR of 400+% in Texas.
- An acquisition charge can be assessed if you apply for advances for no more than $40, and you could get each $5 advanced with no more than $1.
- An acquisition charge might be applied if your advances range from $30 to $100.
- The acquisition charge should be no more than one-tenth of the total cash advance amount.
- An installment loan account is allowed to deal with charges no more than:
- When a cash advance is no more than $35, $3 per month is needed.
- When a cash advance is ranging from $35 to $70, $3.50 per month is needed.
- When a cash advance is more than $70, $4 per month is needed.
- In the case of any advance more than $100:
- As long as it is no more than the rate of $4 per month for each $100 of the advance, then the charge for an installment account can be assessed. (Financial Code Ann. §§342.251)
How Much Would a $200 Payday Loan Cose in Texas？
With a 14 days term:
Loan cost: $200*662%*(14/365)=$50.8
To return: Principal + Loan cost = $200+$50.8=$250.8
Repayment in Texas
Borrowers should repay the loan before the maturity date while lenders are supposed to return unearned fees. (RULE §83.604)
Other Information for Consumers
Lenders are not obligated to check a borrower’s competence to repay a loan since July 2020.
Be careful, evaluate your financial situation, don’t get into a debt trap.
The rule was regulated by the CFPB.
Under Texas law, if there is any fraud or any unlawful act from the lenders’ side, it is better to deal with it first before turning to two regulators.
One of two regulators is the Texas Office of Consumer Credit Commissioner (OCCC), which is responsible for businesses that provide small payday loans in Texas. People could visit the official website of OCCC and complete the complaint form for their needs. After filling out the form, send it back to OCCC by email. For your information, the complaint case would be public.
The other regulator is the Texas Attorney General’s office. People are able to file a complaint with them here for further information or seeking help. (The operating steps are similar to the ones of OCCC. )