Payday loans online are legal in Texas. There is no limitation to the amount borrowers can receive. In addition, there is no specific financing fee. To this effect, APR can exceed 400%. The charges on the loan differ and this depends to a great extent on the lender’s decision and the loan amount.
There are two types of payday loans that are available in Texas. These loan types are single installment loans which are between two weeks to a month and multiple installment loan types which have a maximum of six months.
Regulations Governing Texas Payday Loans Online
The ideal way to get a Texas payday loan online is to comply with the stipulated rules and regulations. These regulations govern all activities of online and offline lenders. Before you settle for any deal with a loan payday provider take the following into consideration:
- The lender must operate with a valid license
- Before you append your signature on any loan paperwork, the lenders must have appropriate information such as the terms of the agreement, fees, interest rate, and payback time.
Important aspects of the Texas ordinance include
- All online payday loan lenders also known as credit access firms are mandated to operate with a valid license.
- Lenders must keep a record of their transaction
- The loan amount is not to go above 20% of the borrower’s income
- A maximum of four payments and only three rollovers are allowed.
- The borrower should repay a minimum of 25% of the loan amount.
- Anyone who violates regulations will be fined $500.
Smart consumers should only obtain online payday loans from licensed lenders.
Payday Loan Amount In Texas
In Texas, the law does not place restrictions on the loan amount payday loan providers can give borrowers.
Although there is no specific maximum financing cost, state officials are of the opinion that 400% of APR is on the high side.
What Is The Importance Of Getting A Texas-Licensed Direct Lender?
If you want to protect your interest when getting a Texas payday loan provider, choose a state-licensed direct lender.
Direct lending is simply getting cash directly from the lender to the borrower. In this way, there is no need for a middleman. This is how it works: The client who wants to borrow money goes to the lender’s site and fills out the application form. The lender responds and approves the loan within one business day. As soon as the borrower’s loan is due, the borrower goes back to the site and makes repayment without the intervention of any third party.
How does this profit the borrower? The borrower deals with only one firm. This implies that the state-licensed lender handles all the operations from the application process to repayment. As a result, information that the client provides is available in the database.
How do you identify state-licensed lenders in Texas? You can identify state-licensed lenders by going through the websites of payday loan companies. Alternatively, you can find out if there is a contact number of the customer care department. With this information, you can always call for further enquiries.