Yes. Payday loans are legal in Texas, and lenders must follow Tex. Fin. Code § 393.601-393.628.
Payday loan rules in Texas at a glance
In Texas, payday loans are arranged by a credit access business (CAB): a state-licensed company that helps you get a loan from a third-party lender and charges its own fee for doing so. Ask for the CAB fee and the lender's interest separately, and compare the APR that includes both.
| Payday loans | Legal, through licensed credit access businesses (CABs) |
|---|---|
| Fee or rate cap | No statutory cap on the credit access business fee; set by the loan agreement |
| Right to cancel | Yes, for the contract with the credit access business: you can cancel it before midnight of the third day after the date of the transaction. The law ties this right to that contract, not to the loan from the lender |
| Arrest and criminal charges | Lenders may not threaten arrest or jail to collect |
| Lender license | Required for the credit access business |
| Regulator | Office of Consumer Credit Commissioner |
| Statute | Tex. Fin. Code § 393.601-393.628 |
Source: Tex. Fin. Code § 393.601-393.628 (read the law). We last checked it against the statute on August 13, 2026. See payday loan laws in every state.
What a payday loan costs in Texas
Fee rule in Texas: No statutory cap on the credit access business fee; set by the loan agreement. We don't show a worked example for Texas because the law doesn't fix one price. Compare the APR and the total you will repay in each lender's written disclosure before you sign.
If you fall behind
Lenders may not threaten arrest or jail to collect a payday loan in Texas.
A federal rule also protects your bank account: after two payment attempts in a row fail, the lender needs your new permission before it tries again (CFPB payday rule).
How to check a lender in Texas
In Texas, the credit access business that arranges the loan needs a state license. Look the lender up in the official license search before you sign. Complaints go to the Office of Consumer Credit Commissioner. Lenditup does not check lender licenses for you (see how we verify).
Looking for a loan in Texas?
A payday loan is due in one payment within weeks. If you would rather spread the cost, compare a personal installment loan first. If a payday loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.
Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Texas law.
Payday loan questions for Texas
01What is the most a payday lender can charge in Texas?
02Can I cancel the credit access business contract in Texas?
03How do I check that a payday lender is licensed in Texas?
04Is Lenditup a payday lender in Texas?
Other loan rules in Texas
Car title loans have their own law: see title loan rules in Texas. To compare payday rules across states, use the state payday loan law table, or read how payday loans work.