Tex. Codes » Finance Code · TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · SUBTITLE A. INTEREST · CHAPTER 305. PENALTIES AND REMEDIES
Texas Codes

Tex. Fin. Code § 305.002 (2026)

Additional Liability For More Than Twice Authorized Rate Of Interest

✓ current as of May 2026
Find cases: SyfertCases citing this section TX-LEGstatutes.capitol.texas.gov Justiaon Justia CornellLII Search CasesGoogle Scholar

Sec. 305.002. ADDITIONAL LIABILITY FOR MORE THAN TWICE AUTHORIZED RATE OF INTEREST. (a) In addition to the amount determined under Section 305.001, a creditor who charges and receives interest that is greater than twice the amount authorized by this subtitle is liable to the obligor for:

(1) the principal amount on which the interest is charged and received; and

(2) the interest and all other amounts charged and received.

(b) This section applies only to a contract or transaction for personal, family, or household use subject to this subtitle.

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. 2.06, eff. September 1, 2005.

Notes of Decisions
Cited in 15 cases, 2001–2010 · leading case: Strasburger Enter., Inc. v. TDGT Ltd. P'ship, 110 S.W.3d 566 (Tex. App. 2003).
Sort: Relevance Newest Treatment
Strasburger Enter., Inc. v. TDGT Ltd. P'ship, 110 S.W.3d 566 (Tex. App. 2003). · cites it 4× “Laws 3091 , 3437 (amended 1999) (current version at Tex. Fin.Code Ann. § 305.002 (West Supp.2003)) (liability for principal when charging interest greater than twice authorized amount).”
C & K INVESTMENTS v. Fiesta Grp., Inc., 248 S.W.3d 234 (Tex. App. 2007). · cites it 3× “Tex. Fin.Code Ann. § 305.002 (Vernon Supp.”
Mims v. Fid. Funding, Inc. (In Re Auto Int'l Refrigeration), 275 B.R. 789 (Bankr. N.D. Tex. 2002). “In addition, because Plaintiff alleges that more than twice the legal amount of interest was charged, Plaintiff asks this Court to award it the principal on which the usurious interest was charged, plus the interest and fees charged by Defendants pursuant to Texas Finance Code §…”
Sotelo v. Interstate Fin. Corp., 224 S.W.3d 517 (Tex. App. 2007). “, Tex. Fin.Code Ann. § 305.002 (creditor who charges and receives interest that is greater than twice the lawful amount forfeits, inter alia, the principal amount of the loan, as well as the interest and all other amounts charged and received).”
Mims v. Fid. Funding, Inc., 307 B.R. 849 (N.D. Tex. 2002). “In addition, Appellant alleged that more than twice the legal amount of interest was charged, and Appellant asked the Bankruptcy Court to award it the principal on which the usurious interest was charged, plus the interest and fees charged by Ap-pellees pursuant to Texas Finance…”
Anderson v. Chainani (In Re Kemper), 263 B.R. 773 (Bankr. E.D. Tex. 2001). “Tex Fin.Code Ann. § 305.002 (Vernon Supp.”
Umbrella Bank, FSB v. Jamison, 341 B.R. 835 (W.D. Tex. 2006). “See Tex. Fin.Code Ann. § 305.002(a) (West Supp.”
Home & Hearth Plano Parkway, L.P. v. Lasalle Bank, N.A. (In Re Home & Hearth Plano Parkway, L.P.), 320 B.R. 596 (Bankr. N.D. Tex. 2004). “The only difference is that the amended complaint adds a claim for forfeiture of principal and interest under the note pursuant to Tex. Finance Code § 305.002. Both parties have addressed the new claim in their briefing.”
Strasburger Enter., Inc. D/B/A Strasburger Farms/TDGT Ltd. P'ship v. TDGT Ltd. P'ship & Mut. Serv. Cas. Ins. Co./Strasburger Enter., Inc. D/B/A Strasburger Farms (Tex. App. 2003). · cites it 4× “Laws 3091 , 3437 (amended 1999) (current version at Tex. Fin. Code Ann. § 305.002 (West Supp.”
Strasburger Enter., Inc. D/B/A Strasburger Farms/TDGT Ltd. P'ship v. TDGT Ltd. P'ship & Mut. Serv. Cas. Ins. Co./Strasburger Enter., Inc. D/B/A Strasburger Farms (Tex. App. 2003). · cites it 4× “Laws 3091 , 3437, with Tex. Fin. Code Ann. § 305.002 (West Supp.”
C & K Investments Ken D. Parr A/K/A Kenneth Darwin Parr, Sr. Corine Thornton Parr & Parr Fam. Ltd. P'ship D/B/A C & K Investments v. Fiesta Grp., Inc. (Tex. App. 2007). · cites it 3× “Tex. Fin. Code Ann. § 305.002 (Vernon Supp.”
Robinson & Harrison Poultry Co. v. Galvan, 323 S.W.3d 236 (Tex. App. 2010). “See Tex. Fin.Code Ann. §§ 305.002(b), 349.002(a) (Vernon 2006).”
Show all 15 citing cases →
— Tex. Fin. Code § 305.002(a) — 1 case
Umbrella Bank, FSB v. Jamison, 341 B.R. 835 (W.D. Tex. 2006). “See Tex. Fin.Code Ann. § 305.002(a) (West Supp.”
— Tex. Fin. Code § 305.002(b) — 1 case
Robinson & Harrison Poultry Co. v. Galvan, 323 S.W.3d 236 (Tex. App. 2010). “See Tex. Fin.Code Ann. §§ 305.002(b), 349.002(a) (Vernon 2006).”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.