Texas Usuary Laws - Posted by Randy C.

Posted by Jose de Luna on November 13, 2003 at 09:28:18:

What is the maximum interest rate an investor can charge on a loan to a person on his homestead? The loan may be to pay the homeowner’s property taxes, to remodel his house, or to purchase a house. Can you advice? Thanks!! Jose de Luna

Texas Usuary Laws - Posted by Randy C.

Posted by Randy C. on November 09, 2002 at 07:55:52:

I am trying to find out the allowable interest rate to be charged by a non-lending institution in Texas. My searches on the net and Texas Law sites have been unfruitful. Anyone have an url for such information? It would be of great help.

Randy C.

DTP - Posted by Eric C

Posted by Eric C on November 14, 2002 at 07:39:54:

Hi Randy -

I agree with Mr. Merchant – find an attorney well versed in Texas law as it pertains to charging interest.

The (lending and other)licensing laws are undergoing changes making them far more difficult to obtain and the people who oversee these rules can be extremely capricious. They have been know to rewrite the rules on a whim (no review and very short deadlines for compliance)and selective enforcement is almost a given.

There is more bad news – most possible litigation brought against you (in this area or other) will probably come in the form of a Deceptive Trade Practices action. Triple damages, don’t you know? Besides being the first choice of a lot (OK, most) of TX attorneys it is also by far their favorite weapon. The statutes are unbelievably broad.

Choose your attorney well. Listen to the asset protection people. Don’t assume that any lay person knows what they’re doing. The laws (and regs) change constantly. And in today’s economic climate, you don’t want to be the target of a witch hunt in which you may ultimately win the case, but lose everything in the process.

Take care,

Eric C

PS – Texas is a great place to live and work, but the legal system here is in serious trouble. Too many folks are treating it as a cheaper (and more lucrative) vresion of the State Lotto.

Quite frankly, I view it as another form of warfare and it can be every bit as destructive financially and emotionally. There is no adequate response or defense at this time; the legal system just hasn’t caught up to the 21st century.

Be careful out there.

Re: Texas Usury Laws - Posted by John Merchant

Posted by John Merchant on November 09, 2002 at 11:09:05:

Here’s what Commercial Collection Agency Section of the Commercial Law League of America says about TX usury law:

“The TX law is extremely confusing and somewhat inconsistent. Careful attention must be paid to every provision of the TX law dealing with interest rates”.

Therefore I’d suggest you might want to find out what other, experienced “Lonnie” folk have been doing with their interest rates in TX, and should that avenue not work for you, pay a few bucks to a TX lawyer (maybe a lawyer who already represents a MH Dealer would be a good place to start, because that lawyer probably already has some knowledge about this, as per MHs)to give you a written opinion upon which you can rely.

I had a look at the TX statutes and I’d sure agree with the above quote. Confusing and inconsistent indeed!