Legal Question in Consumer Law in Texas

Max allowable interst in Texas for consumer credit card

What is the maximum allowable interest rate that can be charged from a bank owned credit card company to a Texas resident? Does this same max rate apply to any out of state bank's credit card companys?

Is there a second tier of max interest or flat penalty for any delinquent payment to same credit card company (in state / or out of state)?

Question pertaining to consumer credit card balance of $2000 or less.

If this bank owned credit card company is charging more than the max allowable interest/ or penalties, then what do you recommend as a course of action?

Thank You,


Asked on 5/02/06, 3:15 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Max allowable interst in Texas for consumer credit card

The maximum allowable interest a national credit card company can charge, if I recall correctly, is a little short of 30%. You'd have to check the statutes dealing with interest, and whether or not they're associated with a national bank. I can't give you the exact number.

The balance owed is immaterial, and almost anything can trigger the increase; including a late payment on a different card.

They are very careful to avoid any usurious interest charges, but they'll go right up to the limit.

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Answered on 5/02/06, 3:41 pm


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