Short answer: in Texas, consumer installment and small signature loans are made by lenders licensed by the Office of Consumer Credit Commissioner (OCCC) under Finance Code Chapter 342 (OCCC). Payday and auto title loans work differently: they are arranged by a credit access business (CAB) that charges its own fee (OCCC), and the OCCC reports that most of that cost has no maximum and APRs can routinely exceed 400% (OCCC 2025 report). This guide is general information, not a statement about where our service is available.
The main loan types in Texas
| Type | Who is licensed | What the OCCC says |
|---|---|---|
| Consumer installment loan (Chapter 342, Subchapter E) | The lender (OCCC regulated lender license) | In 2024, 1,930,881 loans; the average amount fell to about $1,800 (OCCC 2025 report). |
| Signature or small installment loan (Chapter 342, Subchapter F) | The lender (OCCC regulated lender license) | In 2024, 2,106,676 loans averaging $957 (OCCC 2025 report). |
| Payday loan through a CAB | The credit access business, not the third-party lender | The CAB fee is usually a percentage of the loan (OCCC); most of the cost has no cap (OCCC report). |
| Auto title loan through a CAB | The credit access business | You can lose the vehicle and still owe a deficiency after it is sold (OCCC report). |
What the OCCC reports about CAB loans
- APRs on payday and title loans through a CAB can routinely exceed 400% (OCCC 2025 report).
- CAB agreements are limited to 180 days or less; the whole loan may be due in days or over several payments (OCCC 2025 report).
- Refinancing or renewing is very common and adds to the cost (OCCC 2025 report).
To see how renewals add up, use the worked example in our personal loan vs payday loan guide.
Check a license and file a complaint
Use the OCCC licensee search before you borrow, and contact the OCCC consumer helpline at 800-538-1579 or file a complaint online if something goes wrong (OCCC). Lenders licensed through NMLS can also be checked in NMLS Consumer Access.
Compare before you sign
Ask for the APR and the total of all payments for each offer and compare them (CFPB). A credit union payday alternative loan, with interest capped at 28%, may cost far less (NCUA). For general rules in other states, read loan rules by state.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- Texas OCCC: Regulated Lenders
- Texas OCCC: Credit Access Businesses
- Texas OCCC: 2025 Report on Availability, Quality and Pricing of Certain Consumer Loan Products
- Texas OCCC: Consumers (licensee search and complaints)
- NMLS Consumer Access (state license lookup)
- CFPB: What is the difference between a loan interest rate and the APR?
- MyCreditUnion.gov (NCUA): Payday Alternative Loans