Payday loans are legal in Tennessee (Memphis, Cleveland, Murfreesboro, Nashville, etc). The maximum loan amount is $500. You are allowed to have only one outstanding cash advance in Tennessee at a time. The maximum loan term is 31 days. Finance charges cannot exceed 15% of the amount recevied. However, real APR in Tennessee is about 460%. Criminal actions against borrowers are prohibited.
Payday lending in the state is regulated by Tenn. Code Ann. 45-17-101 et seq.
In Tennessee, payday loans (easy money) are called deferred presentment services loans.
A payday loan lender must get a license at the Department of Financial Institutions to be allowed to provide loans in Tennessee. For violating the state law, the lender will get a fine of $1,000.
There is a cooling-off period of 1 business day after 2 continuous payday loans paid off.
The maximum fee amount on a deferred presentment services transaction cannot exceed 15% of the face amount of the online payday loan.
Tennessee Payday Loan Law and Legislation:
|Minimum Loan Term||Not Specified|
|Maximum Loan Term||31 days|
|Interest Rate (APR)||460%|
|Maximum Loan Amount||$500|
|Number of Rollovers Allowed||0|
|Finance Charges||15% of the amount of the check|