Tennessee Payday Loans

Tenn. Code Ann. 45-17-101 et seq.
Status: Legal

Payday loans are legal in the state of Tennessee, pursuant to Tenn. Code Ann. 45-17-101 et seq. There are approximately 1,228 lenders currently operating in the state. The term of a Tennessee payday loan is 31 days or less and is usually based on the borrower’s pay cycle. Also, multiple loans can be taken out at one time, a unique feature allowed under Tennessee’s borrowing laws.

State Regulations

As mentioned above, a borrower can have up to three loans at one time and the lender cannot charge more than 15 percent of the check for rates and fees. The limited number of loans is done to ensure borrowers do not fall into a debt cycle and encourage them to repay the outstanding loans back to the lenders as quickly as possible. State regulations prevent a borrower from deferring presentment of any personal check for more than 31 calendar days after the date the check is tendered to the borrower. Additionally, a borrower may charge a fee to defray operational costs for such actions as investigating the checking account and copying required documents, photographing the person signing the check, securing the check and customer records in a safe, and any other actions deemed necessary during the business transaction.

Tennessee state regulations do not allow rollovers of the amounts due back to the lenders, and consolidating the loans is prohibited. Additionally, a lender cannot seek criminal action against a borrower for late or unpaid fees, but can pursue other legal options to regain the monies.

Process

To apply for a cash advance in Tennessee, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Tennessee are legally required to comply by the following limitations according to Tenn. Code Ann. 45-17-101 et seq.:

Maximum Loan Amount:
$425 ($500 check)
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
15% of the face value of the check
Finance Charge for 14-day $100 Loan:
$17.65
APR for 14-day $100 Loan:
459%
Max # Outstanding Loans at One Time:
3 (2 per licensee)
Rollovers Permitted:
None (cannot renew or otherwise consolidate)
Collection Fees:
Court Costs
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/50.

Regulatory Information

If you have a complaint against a Tennessee Cash Advance location you can contact your state regulator below:

Regulator:
Tennessee Department of Financial Institutions
Address:
511 Union Street, Suite 400 Nashville TN 37219
Phone:
(615) 741-2236
Fax:
(615) 532-1018
Website:

In 2015, the Tennessee Department of Commerce & Insurance’s (TDCI) Division of Consumer Affairs received more than 4,000 complaints and recovered both services and funds for Tennessee consumers through a mediation process. Of those complaints, only 293 were credited to debtor/creditor concerns including payday loans. While the data suggests that payday loan concerns do not present a large problem in Tennessee, a borrower should take care when considering the use of a short term loan.

Tennessee Lenders

Below you can find Tennessee payday loan lenders in the following cities:

Tennessee Statistics**

The following information is key demographic data for the state of Tennessee from the Census bureau.

Total Population:
6,651,194
Median Household Income:
$45,219
Poverty Rate:
16.7%
Median Gross Rent:
$764
High School Graduate or Higher:
85.5%
Bachelor's Degree or Higher:
24.9%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

It is recommended that everyone should understand the ABCs of personal finance, including asking for help, budgeting, and checking their credit. As with cash advance loans in other parts of the country, the burden of understanding the lender requirements and repaying the borrowed funds rests with the borrower. It is therefore highly encouraged that all potential Tennessee borrowers research the state laws and regulations, as well as the lending companies, before committing to the loan. The borrower should therefore not hesitate to ask for help on understating the rules and regulations, create and stick to a budget to pay the loan back and ensure future loans will not be needed, and check their credit when they can, as good credit might allow a potential borrower more options when faced with financial hardship.

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