Tennessee

Tennessee is one of the 25 states that have specific payday loan laws and regulations that permit payday loans. Companies these laws apply to are defined as person’(s) who hold a check for a period of time prior to presentment for deposit.

Under Tennessee law, any payday loan company wishing to lend payday loans must obtain a license through the Department of Financial Institutions. They must show a net worth of $25,000, and provide a record of anyone that owns more than five percent of the company. Fees that apply include a $500 filing fee per location, which must be renewed every year.

The maximum amount of fees a payday loan company can charge in Tennessee is 15% of the face value of the check or $30 whichever comes first. The most amount of money that anyone can borrow in Tennessee is $500. Also, terms for a payday loan in Tennessee shall not exceed 31 days. Under Tennessee law the maximum Annual Percentage Rate (APR) that can be charge is 459%.

In Tennessee, a person can borrow up to three payday loans at a time, so long as the total amount does not exceed $500.

Each payday loan store in Tennessee must conspicuously post their license. Each customer should be given a written explanation in clear, understandable language about fees that are charged and the date in which the check will be deposited.

If a payday lender in Tennessee breaks any of these laws, they may have their license revoked or suspended. Also, any violation of these laws can result in a fine of up to $1,000 for each occurrence.