South · Vehicle-title lending · State statute guide
Title loan laws in Texas
Yes — Texas licenses single-payment title loans. State law sets what a lender may charge and when it may take your vehicle; the limits below are the legal ceiling.
Are title loans legal in Texas?
Yes — Texas licenses single-payment title loans. State law sets what a lender may charge and when it may take your vehicle; the limits below are the legal ceiling.
Statute: Tex. Fin. Code §393 (CSO model)
A title loan is secured by your vehicle, so legality is only half the question — the other half is what the statute lets the lender do with the lien if you fall behind. In Texas, repossession and sale are regulated processes with notice and surplus protections.
What a title loan really costs
Texas's cap: 10% interest + uncapped CSO fees. On a secured loan of $1,000 that is roughly $250 in fees for one month. Installment structures spread the cost but multiply the months — read the total of payments, not the monthly figure.
Repossession: when the lender can take the car
In Texas a title lender must follow the statutory default process — typically a cure period and written notice before repossession, and an accounting of the sale if the car is sold. Anything beyond the vehicle's debt surplus generally has to come back to you.
Who regulates title lending in Texas?
Texas Office of Consumer Credit Commissioner licenses title lenders and takes complaints — the license lookup and complaint desk are at occc.texas.gov.
Repossession rules in Texas
Where title lending is licensed, repossession follows the commercial-code baseline that every secured lender must run: a genuine default, written notice and a chance to cure, a commercially reasonable sale of the vehicle, and any surplus above the debt returned to the borrower. Texas's notice periods and licensing enforcement run through the Texas Office of Consumer Credit Commissioner (occc.texas.gov) — the same office that takes title-lender complaints.
Before a missed payment becomes a default, request the extended payment plan in writing: it pauses the repossession clock and costs a fraction of recovery fees.
Last verified September 6, 2026 · Statute: Tex. Fin. Code §393 (CSO model) · Source: Texas Office of Consumer Credit Commissioner · Not legal advice — confirm with the regulator.
Questions about Texas title loan laws
What is the maximum title loan amount in Texas?
State law or the lender’s underwriting sets the ceiling — commonly a share of the vehicle’s resale value.
Can the lender repossess my car in Texas?
Only as the statute allows: in lending states repossession generally requires a default, advance notice and a right to cure, and the lender must usually return any surplus from the sale above your debt. Check the Texas Office of Consumer Credit Commissioner's rules before you sign.
How much does a title loan cost in Texas?
The statutory cap: 10% interest + uncapped CSO fees. Compare the total of payments, not the monthly rate — a 25% monthly fee is about 300% APR on a single-payment note.
Are online title loans legal in Texas?
Only from a lender licensed in Texas. The lien, disclosures and rollover limits follow your state's statute no matter where the website is based.
Where do I report an illegal title lender in Texas?
To the Texas Office of Consumer Credit Commissioner (occc.texas.gov). Bring the title agreement and payment history; if the lender is unlicensed, also notify the Texas Attorney General and the CFPB.
What are the repossession laws in Texas?
Secured-lending repossession everywhere follows the same baseline: a genuine default, written notice with a chance to cure, a commercially reasonable sale, and any surplus above the debt returned to the borrower. Texas's notice periods and licensing enforcement run through the Texas Office of Consumer Credit Commissioner. Before missing a payment, request the extended payment plan in writing — it pauses the clock and costs far less than recovery fees.