Loans in Texas: payday, personal & title loan laws (2026)

Payday loans are legal in Texas but are arranged by a 'credit access business' (CAB), a licensed credit services organization that obtains the loan for you from a third-party lender. The CAB is the OCCC licensee, and its fee is not capped by state law.

No state cap on the credit access business fee. The law lets a CAB charge fees 'as agreed to between the parties', calculated daily, biweekly, monthly or on another period, as long as the fee is disclosed. Interest charged by the third-party lender is separate.

State law does not ban refinancing. A CAB must post a notice that refinancing instead of paying in full 'will require the payment of additional charges,' and must give you a disclosure showing the fees that build up if the loan is renewed or refinanced for two weeks, one month, two months and three months.

Auto title loans are legal in Texas through the same credit access business model as payday loans: a licensed CAB arranges a loan secured by your unencumbered vehicle from a third-party lender, and the CAB fee is not capped by state law.

No state cap on the CAB's fee; fees are as agreed and must be disclosed.

Tiered caps for licensed Chapter 342 lenders: up to 30% a year on the first $4,600, 24% on the part from $4,600 to $9,660, and 18% on the part up to $23,000 (amounts for loans made July 1, 2026 to June 30, 2027). Small loans up to $1,840 may instead use an acquisition charge plus a monthly handling charge, which produces much higher APRs.

A Chapter 342 license is required to make, transact or negotiate loans that charge more than other law allows.