Payday Loan Laws in Tennessee
Payday loan laws in Tennessee have legalized the industry, which
is thriving. After California, Tennessee has more payday loan operators than any
other state. Short-term loans can solve many financial problems for hard-strapped
families, who often have nowhere else to turn when an emergency occurs that requires
immediate cash. Those with bad credit or no established credit history can find
themselves in an untenable position when emergencies arise. Payday loans offer a
solution for short-term cash needs. They are not intended for long-term solutions,
however. Families with severe cash problems should consider other solutions such
as debt consolidation, credit counseling or bankruptcy.
It is important to note that payday loans are not availble in every state and laws
and regulations vary by state. Information for
Tennessee Payday Loans is provided for your convenience.
Tennessee laws are very strict and limit the term of these loans to 31 days. These
loans are available to those with an established job or source of income and a bank
account. Credit checks are not required, but payday loan repayment history may be
investigated, and identity, job and bank account information will be verified. Loans
are secured by postdated personal check when the next pay period arrives. The amount
of a check is limited to $500, including fees, so the maximum amount of the loan
is $425. Tennessee law allows three outstanding payday loans at any given time.
Payday loan laws in Tennessee limit interest on loans. Lenders
can charge $17.65 percent interest on the first $100. Criminal action may not be
brought against lenders for issuing bad checks for repayment of payday loans. Collection
fees are limited to court costs. Loans cannot be renewed after the repayment deadline.
These laws protect consumers from falling prey to a vicious cycle where interest
is serviced for a long period of time. These short-term loans were never meant to
be a long-term solution for financial problems, but many families in desperate financial
situations can fall victim to a situation where their entire payday check is allocated
to interest rates. Tennessee law offers statutory protection against these occurrences.
Most families are responsible and repay their loans as agreed. Short-term loans
can help people avoid bank overdraft charges, late payment penalties, bad check
service fees, interest and penalties. These can cost considerably more than the
interest loan companies charge consumers, so payday loans are a viable option for
many people needing cash to make a payment or meet an emergency need. They should
not be used to solve long-term financial problems because the interest rates are
The rates are high because the loans are offered to people with bad credit and loan
companies take great risk by making them available. Everyone deserves a second chance
and payday loan laws in Tennessee have recognized the genuine service these loans
provide by legalizing them with strict regulations of interest, loan amount and
terms of service. Responsible consumers with a legitimate need for short-term cash
can relax knowing funds are available. The depth of industry in the state acknowledges
the tremendous need people have for this type of fast and convenient loan.
Take a look at the benefits of applying for Online Payday Loans
if availble in your state.