Texas Credit Access Businesses
Texas Credit Access Businesses obtain credit for a consumer from an independent third-party lender in the form of a “deferred presentment transaction” or a “motor vehicle title loan,” more commonly referred to as “payday loans” or “title loans.”
In Texas, the actual third-party lender is not licensed; the credit access business that serves as the broker is the licensee in this Texas CAB/CSO regulated industry. The credit access business charges a fee to the consumer for obtaining the third-party loan; this fee is usually calculated as a percentage of the loan amount.
The borrower will sign a promissory note with the lender for the actual loan and a separate credit service agreement with the credit access business. Generally, all documents are signed at the credit access business location and payments are made directly to the credit access business.
The Texas CAB services the loan, markets the loan, and secures the consumer loan on behalf of the third-party lender.
Typically, Texas CAB’s charge $22 – $35 per $100 loaned for a period due on the consumer’s next payday.
CREDIT ACCESS BUSINESS LICENSING FORMS
New License Applications: Apply Online: ALECS
Texas CAB Individual License Forms