Guide · Texas
Pawn loans in Texas
A pawn loan lends against an item you leave behind — jewellery, tools, electronics. If you do not repay, the shop keeps and sells the item; nothing else follows you. Ask how long they hold the item and exactly what it costs to get it back.
- You need
- an item worth more than the loan
- You risk
- Only the item you leave.
- Typical speed
- minutes
Before you sign
- Ask for the total you will repay, in dollars, and the due date — in writing.
- Ask what happens if you pay late or cannot pay on the due date.
- Ask whether they will call your employer or your references.
- Never pay a fee before you receive the loan.
- Ask how long they hold your item and exactly what it costs to get it back.
What Texas law says
Checked against the statute on 23 September 2026.
Pawn loans: capped charges, and 30 days' grace
- Texas caps the monthly pawn charge: 20% of the amount on the smallest loans, stepping down to 15%, then 2.5%, then 1% a month as the amount grows. The dollar brackets are adjusted each year. Tex. Fin. Code §371.159
- If you don't repay by the due date, the shop must hold your item for at least 30 more days, and you can still redeem it in that time. Tex. Fin. Code §371.169
- You never have to redeem the item, and the shop can't make you personally liable for the loan — the item is all you risk. Tex. Fin. Code §371.170, §371.171
If you can’t pay
If you cannot pay on the due date, talk to the lender before the date, not after — ask for an extension or a payment plan in writing, and what it costs in dollars. If a lender breaks the rules, you can complain to the Texas Office of Consumer Credit Commissioner (OCCC). Call the OCCC on 800-538-1579 or contact them online.
Signs it isn’t a real lender
- Asks for a fee before paying you.
- Wants payment by gift card or wire transfer.
- Threatens you with arrest.
- Cannot give a state licence number.
- Promises “guaranteed approval”.
- Has no office at its listed address.