The Texas Credit Access Business (CAB) CSO Loan Model is a type of loan that is offered in the state of Texas by CABs, which are companies that provide loans to consumers who may have difficulty obtaining traditional loans from banks or other lending institutions.

Under this model, the CAB acts as a Credit Services Organization (CSO), which means that it provides services to help consumers obtain loans from third-party lenders.

In the CAB CSO loan model, the CAB typically charges the borrower a fee, which can be a percentage of the loan amount or a flat fee, for its services.

The CAB then uses this fee to pay the third-party lender, who provides the loan to the borrower. The CAB may also charge additional fees for other services such as credit counseling or loan processing.

The CAB does not actually lend money to the borrower, but instead acts as a facilitator between the borrower and the third-party lender.

The third-party lender is responsible for underwriting and servicing the loan, and is also responsible for collecting payments from the borrower.

It’s important to note that the CAB CSO loan model is heavily regulated by the state of Texas, and CABs are required to be licensed and registered with the state.

Additionally, CABs are subject to strict rules and regulations regarding loan terms, fees, and interest rates and must disclose all fees and charges to borrowers in writing before the loan is made.