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Payday Loans

This legal research guide provides information about payday loans and other short-term loans in Texas.

General Information

About This Guide

This guide was created to provide information about payday lending, auto-title loans, and other short-term loans. It includes links to relevant Texas and local laws, resources and information explained in "plain English", and links to studies on payday and auto-title loans. 

A payday loan (also called a cash-advance loan, a check-advance loan, a post-dated check loan, or a deferred deposit loan) is a short-term, high-interest loan from a check cashing business or a finance company. These loans are often cash advances secured by personal checks or electronic transfers, and often have very high annual percentage rates (APR). 

Texas Laws and Regulations

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.

Local Regulations

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.

Explained in "Plain English"

Because Texas and federal law may not be easy to understand, below you'll find a collection of resources that help to explain the law in "plain English."

Studies on Payday and Auto Title Loans

As a hot consumer topic, payday loans are being researched by a variety of groups. Some of those studies are linked here. They provide interesting insight and statistical analysis.