June 2025 — Texas just passed House Bill 4105, introducing new rules for payday lenders statewide. It’s the biggest shift since 2019 — and it could redefine how loans are structured, disclosed, and repaid in the Lone Star State.
So What’s Changing?
HB 4105 includes 3 key reforms:
- 📃 Mandatory APR disclosure in bold text before signing
- 🔄 A limit on rollovers to 2 per loan
- 🔍 Annual reporting to the Texas OCCC on default rates and fees collected
Why It Matters
“This bill aims to create more transparency in the short-term lending space, while still allowing access to emergency cash,” says Lisa Rayburn, financial law professor at UT Austin. “It’s not about banning loans — it’s about informed consent.”
For borrowers, it means fewer surprises — and hopefully, fewer cycles of debt due to hidden fees and reborrowing traps.
What You Should Do
Borrowing in Texas? Here’s how to protect yourself now:
- 📋 Use our Payday Loan Calculator before signing anything
- 📈 Check lender history in our Texas lender ratings section
- ⏱ Pay attention to rollover limits — 2 is now the cap
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What Comes Next?
The law takes effect on August 1, 2025. Some lenders may adjust their practices early. Expect public awareness campaigns and — possibly — copycat bills in other high-APR states.
If you're in another state, check our loan law breakdowns by state.