Payday Loans in Texas

Payday loans are governed by both federal and Texas state law. Under federal law, all Payday Lenders must comply with Regulation Z of the Truth-in-Lending Act. The amount of the loan, the amount of finance charge that will be assessed against you and the annual percentage rate (APR) of the loan must be conspicuously displayed on the contract/agreement you will sign.

While payday loans are legal in the state of Texas, the State has passed a number of laws regulating payday loans. Some important features of the Texas law are:

• There is no specified limit on the size of a payday loan in Texas.

• The lender cannot charge more than $10, plus $4 for every $100 borrowed, in loan fees.

• The term of the payday loan cannot exceed 31 days, and must be at least 7 days

• The payday loan agreement must specify the amount of the loan, the loan fees, the total fees paid expressed both as a dollar amount and an effective annual percentage rate, the due date of the loan.

• The lender cannot rollover ("extend") the loan.