Know Before You Borrow in Texas
- Interest rate cap: No state cap on CAB fees (typical market rate: $20 per $100 per 30 days = ~243% APR); third-party lender interest capped at 10% per year
- Loan range: $500 to $10,000 (typical)
- Repayment term: Single payment (typically 30 days) or installment (typically 90-180 days)
- Regulated by: Texas Office of Consumer Credit Commissioner (OCCC)
For complete Texas title loan regulations and consumer protections, visit our full Texas guide.
Quick Answers About Title Loans in McAllen
Texas title loans cost more than most conventional loans. There is no cap on the fees lenders can charge, and the total effective APR can far exceed the rates charged by banks or credit unions. Texas law requires a written disclosure comparing your loan’s cost to other products before you sign. Understanding the total repayment amount is essential before agreeing to any title loan.
Yes, you can lose your car if payments stop on a title loan. Texas law allows repossession after default with no court order and no required advance notice to the borrower. You must receive at least 10 days notice before the vehicle is sold. If the sale does not cover the full amount owed, including repossession and storage fees, the lender may pursue the remaining deficiency. The best course of action is to contact your lender before missing a payment. Early communication is your best opportunity to find a workable path forward.
