South · CSO model
Payday loans in Texas
Texas runs a credit services organization (CSO) model: lenders operate through licensed brokers, which changes how fees appear on paper — the loan math below shows what that means in practice.
Compare the total you repay — broker fee plus the note — never the headline note rate.
The rules behind the numbers
Credit Access Businesses (CABs) charge fees for arranging loans with third-party lenders, resulting in high-cost short-term credit.
In practice: borrow $300 for a standard term and the finance charge is $60 — $360 repaid at the end, about 400% - 600% APR. Every compliant lender in Texas has to fit inside that schedule.
Statute: Tex. Fin. Code Ch. 393
Regulator: Texas Office of Consumer Credit Commissioner · occc.texas.gov
Questions people ask here
How does the Texas CSO model work?
In CSO states a licensed credit services organization arranges the loan with a third-party lender and charges a broker fee on top of the note. The APR on paper looks lower; the broker fee is where the cost sits.
What does a CSO-arranged loan really cost here?
On a $300 advance you repay about $360 once the broker fee and the note are both settled — roughly 400% - 600% APR on a standard term.
Who licenses CSOs in Texas?
Complaints about a licensed lender go to the Texas Office of Consumer Credit Commissioner (occc.texas.gov) — keep the loan agreement and every fee disclosure you were given.
Can a CSO charge any fee it wants?
No — the broker fee is capped by statute, and the contract must disclose it. Compare the total you will repay, not the note rate.
1371 storefront lender locations listed statewide in the 2022-02-20 public directory snapshot — each city guide carries its local list.