Bill > HB4339

This bill modifies the Texas Finance Code by increasing the maximum interest rates that can be charged on certain consumer loans not secured by real property. Specifically, the bill raises the annual interest rate cap from 30% to 36% for cash advances up to $500, from 24% to 30% for cash advances between $500 and $1,050, and from 18% to 24% for cash advances between $1,050 and $2,500. These changes apply only to loans made on or after September 1, 2025, meaning that existing loans will continue to be governed by the interest rate rules in effect when they were originally made. The tiered interest rate structure allows for higher rates on smaller loan amounts, potentially reflecting the increased risk and administrative costs associated with smaller consumer loans. By incrementally raising the permissible interest rates, the bill may provide more flexibility for lenders while still maintaining some regulatory constraints on loan pricing.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4339