CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Payday loans in Texas: how they work and what they cost
In Texas most payday and title loans are arranged by a credit access business (CAB): a licensed broker that gets you a loan from a third-party lender and charges its own fee, usually a percentage of the loan. The Texas Office of Consumer Credit Commissioner (OCCC) licenses the CAB, not the lender, and its own study says CAB transactions lack regulatory caps and tend to carry the highest costs. Compare every alternative first.
On this page
How a Texas payday loan works
A credit access business obtains credit for you from an independent third-party lender, as a deferred presentment transaction (payday loan) or a motor vehicle title loan. The lender is not licensed; the CAB that acts as broker is the licensee. The CAB charges you a fee for obtaining the loan, usually calculated as a percentage of the loan amount (Texas OCCC ↗).
You sign two documents: a promissory note with the lender and a separate credit services agreement with the CAB. Documents are generally signed at the CAB, and payments go to the CAB (OCCC ↗).
What it costs
The OCCC’s 2024 study of consumer loan products notes that credit access business transactions lack regulatory caps and tend to carry the highest costs among the products it oversees (OCCC study ↗). Ask for the lender’s interest and the CAB fee separately, then the total in dollars.
| Our example: $500 for two weeks | Total fees | APR |
|---|---|---|
| Fees of $15 per $100 | $75 | 391% |
| Fees of $25 per $100 | $125 | 652% |
Illustrative fee levels only — Texas sets no single cap, so your offer may be higher or lower.
Renewals
If you cannot repay, the loan may be renewed with another broker fee. Before renewing, ask for the total you will have paid and whether a smaller payment plan is possible. Read extended payment plans.
Check the license and complain
Look up the CAB on the OCCC’s license search before you sign. The OCCC consumer helpline is 800-538-1579 (OCCC ↗).
Cheaper options to compare
- A payday alternative loan from a federal credit union (APR capped at 28%).
- A cash advance app — compare costs with our fee calculator.
- Asking the company you owe for more time or a payment plan.
- If you already owe a payday loan: extended payment plans and getting out of payday debt.
Questions
Is there a maximum payday loan amount in Texas?
State law does not set one statewide cap on these brokered loans. Some Texas cities have local ordinances; check your city.
Who do I pay — the lender or the CAB?
Usually the CAB. The OCCC says payments are generally made directly to the credit access business.
Are title loans handled the same way?
Yes. Texas title loans are also arranged by credit access businesses. See car title loans.
Sources and limits
- Texas OCCC: credit access businesses (payday and title loans) ↗
- Texas OCCC: 2024 study of consumer loan products ↗
- Texas OCCC: consumer helpline and resources ↗
- FTC: payday and car title loans, and less expensive options ↗
Sources checked November 12, 2026. Laws change; confirm with your state regulator before borrowing. This is general information, not legal advice. Worked examples are our own arithmetic. How we use sources.