Payday Loans in Texas

Yes, payday loans are legal in Texas. A credit access business (CAB) licensed by the OCCC arranges the loan with a third-party lender and charges its own fee, which Texas law doesn't cap. OCCC's figures put the average at $34.14 per $100 borrowed over a month, about 415% APR.

What a Texas Payday Loan Costs, From OCCC's Figures

Every CAB must show you OCCC's cost disclosure before it arranges a loan. It puts the average payday loan at $34.14 in fees and interest for each $100 borrowed over one month. Here's that rate in dollars:

Worked out from OCCC's published averages, since Texas sets no cap on CAB fees; not offers from lenders in our network. *If renewed at the same rate. Your disclosure shows the CAB's own figures.

OCCC's second-quarter 2026 data gives the CAB fee alone, per $100, on each type of loan:

On the average installment payday loan, that's about $988.33 in CAB fees on $606, before the lender's interest. Want a capped rate? See Texas installment loans.

One Payment or Several: How Texans Repay

Most Texas payday loans now come in installments: 318,001 of them in the second quarter of 2026, against 19,057 single-payment loans. Of every 10 single-payment borrowers in OCCC's 2022 data:

• 5¾ repaid on time, usually within 30 days;
• 1½ renewed once and 1¾ two to four times;
• 1 renewed five or more times or never paid off.

State law sets no limit on renewals, and each one brings new fees.

Dallas and Austin Rules That Go Beyond State Law

OCCC noted in 2012 that Dallas, Austin and San Antonio restrict renewals and installments on CAB loans.

• Dallas. Loan size has been limited against income since 2011. Since 2021, fees on unsecured loans arranged by credit services organizations can't top 0.1% a day of the balance, and a title loan allows at most four payments, or three renewals, each cutting what you owe by 25%. The Fifth Circuit declined to block these rules in July 2025.
• Austin. Every CAB must register with the city each year, display its certificate and a borrower's rights poster, and give you a copy of any contract you sign.

Rights Written Into Every Texas CAB Contract

• No prepayment penalty. The contract must say so.
• No criminal threats. No one may pursue criminal charges over your check or debit authorization absent forgery, fraud, theft or other crime. OCCC says a bounced postdated check isn't enough.
• Fair collection. Texas and federal debt collection laws apply.
• Three days to cancel. The credit services contract must say you can cancel it before midnight of the third day after signing.
• Military borrowers. The federal 36% Military APR limit applies where it covers you.

Three Checks Before You Take a CAB Loan

1. Read OCCC's disclosure, especially what renewing would cost.
2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign. In Texas, you'd sign a lender's note and a CAB agreement.
3. Compare the fee with the CAB's posted schedule and OCCC's averages above.

Finding the CAB in OCCC's ALECS Search

1. Search ALECS for the business named on the storefront, website or agreement.
2. Check for an active credit access business license; each location needs its own.
3. Match the name and address. The lender won't appear: OCCC licenses the CAB.

OCCC's consumer helpline: (800) 538-1579 or [email protected].

Common Questions

Official Sources

← Texas loan rules