Is the third-party lender limited in the amount of interest or fees charged?

Yes. The maximum rate of interest for a small, short-term loan is 10% per annum. A borrower is entitled, free of charge, to a ten-day grace period before a late fee can be assessed for failure to repay. Late fees, if any, are capped at 5% of the amount unpaid. All additional fees associated with these loans are regulated by Chapter 302 of the Texas Finance Code.

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