September 18th, 2008 by Reed Allmand 
Payday loans are instant short terms loans. Payday loans are also called cash advance or cash advance loans. They are useful if you need a small loan to get you to your next paycheck. Payday loans are regulated by state laws.
Payday loan laws were enacted in Texas in 2000. A payday loan lender must apply and obtain a license before operating in the State of Texas. A person is said to be in the business of payday loans if he makes cash advances for a consumer’s personal check, or in exchange fore the consumer’s authorization to debit the consumer’s deposit account.
The law prescribes the service and handling fees a lender can charge.
Service fees
| Loan amount | Service fee |
| Under $30 | $1 per $5 |
| $30 to $100 | one-tenth the loan amount |
| Above $100 | $10 |
Handling fees
| Loan amount | Service fee |
| Under $35 | $3.50 each month |
| $35 to $70 | $4 each month |
| Above $70 | $4 each month for every $100 borrowed |
The payday loan agreement must contain:
- the named of the lender,
- the transaction date,
- the amount of the check,
- an itemization of fees,
- the earliest date the check must be deposited,
- a total amount expressed in U.S. dollars,
- an annual percentage rate,
- the name, address, and phone number of the Consumer Credit Commissioner.
The lender must provide a fee schedule along with the agreement. The agreement must also provide a notice that sates payday loans are intended for short-term cash needs. The lenders cannot divide one loan into two loans for the sole purpose of collecting higher interest fees. The maximum term limit for payday loans in Texas is 31 days. The minimal term limit for payday loans is 7 days. A payday loan can be renewed one time each month.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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