Texas does not currently allow payday loans, but a recent bill has been proposed in the state legislature that would change that. The bill, HB 420, was introduced by Representative Gary Elkins in February of 2017. If passed, the bill would allow payday loans with an APR of up to 204%.
Opponents of the bill say that it would lead to predatory lending practices and saddle low-income borrowers with high-interest debt. Supporters of the bill argue that it would provide much-needed access to credit for those who need it.
The fate of HB 420 is still undecided, and it is uncertain whether or not it will pass. If it does pass, Texas will join the majority of other states in allowing payday loans.