Sec. 305.001. LIABILITY FOR USURIOUS INTEREST. (a) A creditor who contracts for, charges, or receives interest that is greater than the amount authorized by this subtitle in connection with a transaction for personal, family, or household use is liable to the obligor for an amount that is equal to the greater of:
(1) three times the amount computed by subtracting the amount of interest allowed by law from the total amount of interest contracted for, charged, or received; or
(2) $2,000 or 20 percent of the amount of the principal, whichever is less.
(a-1) A creditor who contracts for or receives interest that is greater than the amount authorized by this subtitle in connection with a commercial transaction is liable to the obligor for an amount that is equal to three times the amount computed by subtracting the amount of interest allowed by law from the total amount of interest contracted for or received.
(b) This section applies only to a contract or transaction subject to this subtitle.
(c) A creditor who charges or receives interest in excess of the amount contracted for, but not in excess of the maximum amount authorized by law, is not subject to penalties for usurious interest but may be liable for other remedies and relief as provided by law.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 2.05, eff. September 1, 2005.
Notes of Decisions
Hoxie Implement Co., Inc. v. Baker, 65 S.W.3d 140 (Tex. App. 2001).
· cites it 4× “Rather, it merely informed its opponent 1) that the petition "may" be filed and 2) of interest costs Hoxie incurred in acquiring and holding the combines for Baker.”
Strasburger Enter., Inc. v. TDGT Ltd. P'ship, 110 S.W.3d 566 (Tex. App. 2003).
· cites it 4× “Laws 608 , 609 (amended 1979, 1997 & 1999) (current version at Tex. Fin. Code Ann. §§ 305.001 , .002). Carpet Services pleaded for prejudgment interest on a portion of the contract debt for a period before the debt was due, but such interest was against the contract provisions.”
Armstrong v. Steppes Apts., Ltd., 57 S.W.3d 37 (Tex. App. 2001).
· cites it 2× “Laws 608, 610 (repealed 1997)) (current version at Tex. Fin.Code Ann. § 305.001 (Vernon Supp.”
In Re Perry, 425 B.R. 323 (Bankr. S.D. Tex. 2010).
· cites it 4× “28] is usurious as contracted for, charged, or received, out, and that the penalties resulting under Tex. Fin.Code § 305.001(a-l) should be set off against UDF’s claims against Perry.”
Leteff v. Roberts, 555 S.W.3d 133 (Tex. App. 2018).
· cites it 3× “Leteff counterclaimed for usury, under Texas Finance Code § 305.001, on the 14 loans that called for interest.”
Duggan v. Marshall, 7 S.W.3d 888 (Tex. App. 1999).
· cites it 2× “Marshall pleaded usury as an affirmative defense and filed a counterclaim for common-law usury and for penalties pursuant to Tex. Fin.Code Ann. §§ 305.001, 305.002 (Vernon 1998).”
Mims v. Fid. Funding, Inc., 307 B.R. 849 (N.D. Tex. 2002).
· cites it 2× “Appellant alleged that Appellees charged AIR usurious interest and asked the Bankruptcy Court to assess triple penalty pursuant to Texas Finance Code § 305.001, 6 equaling $413,008.”
Fleetwood Servs., LLC v. Complete Bus. Solutions Grp., Inc., 374 F. Supp. 3d 361 (E.D. Pa. 2019).
· cites it 2× “") with Tex. Fin. Code § 305.001(a-1) ("A creditor who contracts for or receives interest that is greater than the amount authorized by this subtitle in connection with a commercial transaction is liable to the obligor.”
— Tex. Fin. Code § 305.001(a) — 15 cases
Hoxie Implement Co., Inc. v. Baker, 65 S.W.3d 140 (Tex. App. 2001).
“Rather, it merely informed its opponent 1) that the petition "may" be filed and 2) of interest costs Hoxie incurred in acquiring and holding the combines for Baker.”
— Tex. Fin. Code § 305.001(a)(1) — 1 case
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