New Texas Law Ends State Fee Collection On Certain Consumer Loans

A 2023 Texas law, House Bill 4738, has now taken effect and ends the state’s collection of small portions of certain consumer loan fees, without changing what borrowers pay or what lenders can charge.​

What the new law does

• HB 4738 eliminates provisions in the Texas Finance Code that required part of the administrative fee on certain non–real property consumer loans and secondary mortgage loans to be remitted to the state comptroller.​

• Under prior law, lenders sent $1$ dollar of each relevant fee on certain non–real property loans and $0.50$ dollars on certain secondary mortgage loans to the state to support Finance Commission financial services studies.​

Impact on borrowers and lenders

• The law does not reduce or increase the fees that consumers pay on these loans; it only stops the state from taking a small slice of fees that were already being charged.​

• Lenders will now retain the full administrative fee amount that previously was partially remitted to the state, which supporters frame as a move toward efficiency and leaner government.​

Rationale and timing

• HB 4738’s sponsors noted that the Finance Commission has operated as a self-directed, semi-independent agency since 2009 and no longer relies on these fee remittances, making the state collection requirement unnecessary.​

• Senator Judith Zaffirini and Representative Charlie Geren highlighted the law as eliminating “unnecessary state fees” on certain consumer loans and streamlining state operations when announcing its implementation in early 2026.​