General Information

Payday 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 a very high annual percentage rate (APR).

Texas Law

Texas Finance Code, Chapter 393
Many, but not all, businesses offering payday loans are regulated by this chapter. Credit services organizations are sometimes referred to as CSOs.
7 TAC 83 subchapter B, "Rules for Credit Access Businesses"
The Office of Consumer Credit Commissioner's regulations regarding credit access businesses.
Office of Consumer Credit Commissioner, Credit Access Business resources
This portal for credit access businesses links to primary law as well as agency advisory letters, reporting requirements, and required licensing forms.

Local Regulations

Payday Lending Clearinghouse
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.
Austin Code of Ordinances
Ch. 4-12 "Registration of Credit Access Businesses," effective 1/1/2012.
Balcones Heights Ordinances, Ch.121: Credit Services Businesses
This chapter enables monitoring of credit access businesses in an effort to reduce abusive and predatory lending practices. It was added by Balcones Heights Ordinance 2013-11 with the effective date of 8/1/2013.
Dallas Code of Ordinances
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 [PDF].
Denton, Ordinance 2013-073 [PDF]
This ordinance has not yet been codified, but pertains to credit access businesses and was effective 4/8/2013.
El Paso Code of Ordinances
Ch. 5-17, "Credit Access Businesses," effective 1/8/2013.
Houston Code of Ordinances
Ch. 28, Art. XV, Div. 1, "Credit Access Businesses," effective 7/1/2014.
San Antonio Code of Ordinances
Ch. 16, Art. 16 "Credit Access Business," effective 1/1/13.

Understanding the Law

What is a payday loan?
The Consumer Financial Protection Bureau discusses the characteristics of payday loans.
Credit, Loans and Debt
Federal Trade Commission consumer information page provides information about car title loans, payday loans, and cash advances.
FAQ - Texas Fair Lending Alliance
This organization's webpage provides answers to frequently asked questions about payday loans. See their main site for links to news updates about payday lending as well as resources for borrowers and a place to share your story.
Payday Lending Statutes
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."
Payday Loans Questions and Answers
The Consumer Financial Protection Bureau provides FAQ pages on payday loans and other consumer issues.
Fast Cash: How Taking Out a Payday Loan Could Land You in Jail
This 2013 article from the Texas Observer covers when a payday lending company may be able to file criminal charges against a borrower who is in default.
Report: Texas Payday Lenders and Prosecutors Team Up to Criminally Pursue Borrowers
A 2014 follow-up to the Texas Observer's 2013 article on payday loans and criminal prosecutions. This article reports on a new study from Texas Appleseed.
Repossession - Vehicle or Property
This page from TexasLawHelp describes when your vehicle could be repossessed due to nonpayment of a debt, your rights in this situation, and what to do if your vehicle is repossessed.
What are my rights under the Military Lending Act?
The answer to this question, from the Consumer Financial Protection Bureau, explains the cap on loan interest rates and other rights of active-duty service members.

E-Books from the Texas State Law Library

These e-books can be viewed by those who have signed up for a free library account with the State Law Library. Only Texas residents are eligible to sign up. Signing up is free.

Our librarians recommend: