Below you will find references to the Texas laws that govern payday loans. If you find these statutes difficult to understand, you may want to look at the "plain English" resources on this page or speak to an attorney.
This portal for credit access businesses links to primary law as well as agency advisory letters, reporting requirements, and required licensing forms.
Several cities in Texas have passed ordinances related to the payday lending industry. Below are resources related to local regulation; however, this list may not be comprehensive. For assistance with searching your city's ordinances, please visit Municipal Laws and Ordinances.
This webpage from the Texas Municipal League covers recent changes in local regulation of payday lenders. It provides access to news updates, lawsuit pleadings, relevant reports, and sample ordinance language.
Ch. 50, Art. XI "Credit Access Business," effective 1/1/2012 Ch. 51A, Art. IV "Zoning Regulations". Several sections of this chapter were amended by an ordinance which created a new alternative financial establishment use, Ordinance no. 28214.
This July 2013 study from the Center for Responsible Lending examines issues surrounding car title and other "asset-based lending" practices nationwide. The report discusses current legislation and offers policy recommendations.
This February 2013 study, written by the Consumer Federation of America and the Center for Responsible Lending, provides an overview of the state of car title lending in the U.S. The authors describe the structure of car-title loans, estimate of the size of the national car-title loan market, discuss the typical borrower’s experience, and provide state and national policy recommendations.
Issued May 20, 2014, this study by the Center for Public Policy Priorities, "shows Texans paid more in payday and auto title loan fees in 2013 compared to 2012 and remained in debt longer, even though they took out fewer total loans during that same time"
The Pew Charitable Trusts' Safe Small-Dollar Loans Research Project focuses on small-dollar credit products such as payday and automobile title loans, as well as emerging alternatives. The project works to find safe and transparent solutions to meet consumers’ immediate financial needs. This webpage serves as a clearinghouse to Pew reports and other resources on this topic.
This National Conference of State Legislature resource "summarizes state statutes regarding payday lending or deferred presentment, which features single-payment, short-term loans based on personal checks held for future deposit or on electronic access to personal checking accounts."
Per the introduction," the Consumer Financial Protection Bureau (CFPB) has engaged in an in-depth review of short-term small dollar loans, specifically payday loans extended by nondepository institutions and deposit advance products offered by a small, but growing, number of depository institutions to their deposit account customers."
In this 2011 study, the Texas Appleseed Project partnered with the Texas Alliance for Economic Inclusion to survey low- and moderate-income consumers on their short-term borrowing practices. The aim of the report is provide information to policymakers so that they can understand and address short-term lending needs fairly.
The information provided on this page has been prepared for general information purposes only and should not be construed as, nor substituted for, legal advice. It is strongly recommended that you contact an attorney for advice specific to your fact situation. Your local bar association or the State Bar of Texas Lawyer Referral Information Service (1-800-252-9690) can assist you with locating an attorney.
Some of the electronic resources we refer to in this guide may be in PDF format. Adobe Reader or similar software is required to view PDFs.
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From their Web site: The Center For Consumer Law helps consumers settle disputes by informing them of their legal rights and assisting with the resolution of disputes through mediation and, when necessary, litigation.