Loan Rates and Fees in Texas

Texas doesn't cap payday loan fees directly. Most short-term lenders operate as Credit Access Businesses (CABs), charging a credit services fee - labeled "CSO fee" or "CAB fee" on your agreement - for arranging the loan with a third-party lender. No state maximum applies to the CAB fee, so the amount varies by lender; CAB agreement terms are capped at 180 days or less.

On a $500 loan due in 14 days, a CAB fee of roughly $110–$130 is common in the market, putting your total repayment around $610–$630 - but because there's no state cap, your offer could be higher or lower. Federal disclosure rules require lenders to show an APR on your agreement; on a 14-day loan at that fee range, the APR works out to roughly 570%–680% - that's the combined fee scaled to a full year.

• Rollovers: state law doesn't prohibit them, but several Texas cities limit rollovers to three for single-payment loans - check your city's ordinance if you're in Austin, Dallas, San Antonio, Houston, or El Paso, among others.
• Returned payment fee: no statewide cap - confirm the exact amount on your agreement before you sign.
• Verification/database fee: Texas doesn't operate a statewide payday loan database, so no database fee should appear - question the line item if it does.

If any fee on your offer seems unclear, contact the Texas Office of Consumer Credit Commissioner (OCCC).

Most installment lenders in Texas also operate as CABs with no state cap on the CAB fee - total cost varies by lender. Some lenders hold a regulated lender license under Chapter 342 of the Texas Finance Code, which does cap rates; see the table below.

For Chapter 342-E loans, a lender may charge an origination fee - labeled "acquisition charge" on your agreement. CAB-arranged installment loans don't follow these caps; verify exact origination charges with the OCCC.

On a $1,500 Chapter 342-E loan at 30% simple interest for 12 months, you'd repay approximately $1,750 total - about $250 in interest plus the $1,500 principal, before any allowed origination fee. On a $1,500 CAB-arranged installment loan repaid over 6 months, total fees plus interest vary widely by lender - compare the "total of payments" line across offers.

• Refinancing: refinancing restarts interest and fees on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
• Returned payment fee: same as payday - no statewide cap for either product; confirm the exact amount on your agreement.
• Late fee: for Chapter 342-E loans, the lender can charge up to 5% of the missed payment after a 10-day grace period, once per missed payment; CAB-arranged loans have no state-mandated late fee cap - check your agreement.
• Prepayment: on Chapter 342-E loans using simple interest, unearned interest stops accruing when you pay early - for details see installment loans in Texas.

If an offer's fees seem unclear, verify with the OCCC.

• Returned payment fee: no statewide cap for either product - confirm the exact amount on your agreement before signing.
• Total of payments: the single most important number on the agreement - this is what you'll actually pay back over the full term, including all fees and interest.
• Military households: if you or your spouse is active-duty, the federal Military Lending Act caps all-in cost at 36% MAPR - compare that to the APR on your offer.