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Daniel Cohen
UpdatedDec 9, 2022
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    4 min read

Texas Consumer Laws at a Glance

Each state legislature wrote its own set of laws protecting state residents. This page contains seven tables that condense important consumer-related laws for Texas residents. Because seeing all seven tables is a bit overwhelming, we hid them until you click on links to reveal them. Click on the appropriate link to see the information you wish to see. To learn more, we include links to state and Bills.com resources you can trust.

Texas Collection Law

Account levy and liens against property are allowed in Texas, but not wage garnishment for typical consumer debt. Learn the collections rules for Texas debts, and related laws. +/- View Texas Collection Laws tables

Click on the state statute hyperlink to read the law on the Texas state Web site. Put your cursor over a legal term to read its definition.

Collection LawGarnishmentAccount LevyExemptions (debt)Homestead lawHomestead exemptionDoctrine of NecessariesProbate rule
Texas ruleNoAllowedPersonal property: $30,000 Single $60,000 Family Retirement accounts College savingsYes10 acres municipal 100 acres rural single 200 acres rural familyYesMultiple options
Texas statuteCP Title 3, Chapter 63FI Title 3, Subtitle A, Chapter 59Property Title 5, Subtitle A, Chapter 42Property Title 5, Subtitle A, Chapter 41Family Code Title 1, Subtitle A, Chapter 2Texas Probate Code
Bills.com resourceTexas Collection Laws

Texas Collection Law

Texas Statute of Limitations

A statute of limitations provides an affirmative defense should a creditor file a lawsuit against debtor for a consumer debt. +/- View Texas Statute of Limitations Laws table

Statute of LimitationCredit CardWritten contractSpoken contractJudgment
Texas rule (years)44410
Texas statuteCP Title 2, Subtitle B, Chapter 16Property Title 5, Subtitle B, Chapter 52
Bills.com resourceTexas Statute of Limitations

Texas Statute of Limitations

Texas Bankruptcy Rules

Learn the bankruptcy exemption amounts for Texas residents. View Texas Bankruptcy Laws table

BankruptcyMeans Test StandardsExemptions
Texas ruleFood, Clothing & Other Items_1_$534Single: $30,000 Family: $60,000 Spread across the following 13 categories: Home furnishings, food, farm & ranch vehicles, tools of trade, clothing, jewelry not exceeding 25% of exemption limit, 2 firearms, sports equipment, 1 vehicle per person, certain number of farm animals, pets, life insurance present value, unpaid commissions, wages, health aids, insurance benefits, retirement plans, Social Security benefits.
Texas statuteHealth care65 $144
Housing non-mortgage_1_$377-$575
Housing rent or mortgage_2_$500-$1,188
Transport private_3_$242-$312
Transport public$182
Vehicle ownership costs$496
Texas statuteCensus Bureau, IRS Data and Administrative Expenses Multipliers 1 National standard one person 2 Texas standard varies by county 3 Regional standardProperty Title 5, Subtitle A, Chapter 42
Bills.com resourceBankruptcy Information

Texas Bankruptcy

Texas Mortgage

Texas offers a limited anti-deficiency law for Texas residents who fall into foreclosure. Also, learn the maximum amount of an FHA loan in Texas. View Texas Mortgage Laws table

MortgageFHA & Fannie/Freddie Loan LimitsLawyer needed for home purchaseAnti-deficiency ruleForeclosure typeForeclosure minimum timeline
Texas rule$417,000NoBorrower must be credited for the FMV.Both Non-Judicial41 days (60 is typical)
Texas statuteFHA Mortgage LimitsProperty Title 5, Section 51

Texas Mortgage

Texas Payday Loans

Texas allows a consumer to borrow up to $500 in payday loans, but does not limit the number of loans. View Texas Payday Laws table

Payday LoansAllowed by LawMaximum LoanMaximum FeeMaximum Loan NumberInternet Payday Loans?State Loan Authority
Texas ruleYes$500$10 per loan + 48% annual interest$500, but no max quantityNot outlawedTexas Office of Consumer Credit Commissioner
Texas statuteTexas Finance Code Title 4, Subtitle B, Chapter 342, Subchapter E and Texas Administrative Code Title 7, Part 5, Chapter 83, Subchapter 1, Division 6, Rule §83.604
Bills.com resourcePayday Loans & Hot Checks in Texas

Texas Payday Loans

Texas Consumer Protection

What is the maximum interest rate a consumer can be charged in Texas? What is Texas' Lemon Law? Where can a Texas find no-cost legal services? View Texas Consumer Laws table

Consumer ProtectionConsumer Protection AuthorityDebt settlement allowedCredit counseling fee restrictionsUsury rateUtility RegulatorLabor Complaints officeUnemployment officeLemon Law, Used & NewLegal Aid ContactsCredit Report Freeze Laws
Texas ruleTexas Office of Consumer Credit CommissionerYes$75 enrollment; $10/creditor/month, max $50Varies. 18% for manyPublic Utility Commission of TexasTexas Workforce CommissionTexas Workforce Commission Unemployment BenefitsYes, new and usedTexasLawHelpFree to ID theft victims
Texas statuteOCC Interest Rates pageTexas DMV Lemon Law pageTexasFightsIdTheft.gov

Texas Consumer Protection

Texas Facts

Learn the Texas population, sales tax rate, average income, and more. View Texas Facts table

Consumer FactsPopulationEmployment StatisticsTexas Average IncomeState income taxState income tax rateProperty tax rateSales tax rateState Student Loan 529 plan
Texas rule25,674,6817.8%$24,870NoneN/Aup to $2.50/$100 valuation, plus others6.25%-8.5%Texas Prepaid Higher Education Tuition Program
Texas statuteUS Census BureauTexas Workforce Commission Unemployment NewsUS Census BureauArt. XI §5, Texas Constitution

Texas Facts

Debt statistics

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q2 2022 was $16.15 trillion. Housing debt totaled $11.71 trillion and non-housing debt was $4.45 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

The amount of debt and debt in collections vary by state. For example, in Illinois, 26% have any kind of debt in collections and the median debt in collections is $1485. Medical debt is common and 14% have that in collections. The median medical debt in collections is $641.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.

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