Sec. 305.003. LIABILITY FOR USURIOUS LEGAL INTEREST. (a) A creditor who charges or receives legal interest that is greater than the amount authorized by this subtitle 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 legal interest allowed by law from the total amount of interest charged or received; or
(2) $2,000 or 20 percent of the amount of the principal, whichever is less.
(b) This section applies only to a transaction subject to this subtitle.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.18(a), eff. Sept. 1, 1999.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Chapter 305 - Penalties and Remedies
Subchapter A. Civil Liability; Criminal Penalty
Section 305.001. Liability for Usurious Interest
Section 305.002. Additional Liability for More Than Twice Authorized Rate of Interest
Section 305.003. Liability for Usurious Legal Interest
Section 305.004. Additional Liability for More Than Twice Authorized Rate of Legal Interest
Section 305.005. Attorney's Fees
Section 305.006. Limitation on Filing Suit