Tennessee’s Deferred Presentment Services Act was introduced in 1997 to regulate payday loans throughout the state. Tennessee payday loan laws regulate interest rates, cash amounts, lending terms, payment plans, and payday loan licenses for lenders in the state.
Instant payday loan lenders in Tennessee can approve cash loans up to $500 for as long as 31 days. Lenders may charge either $15 per $100 borrowed or $30 for the whole loan, whichever amount is less. This keeps payday loans affordable for consumers while still allowing them to be profitable for lenders.
Consumers may not have more than two active payday loans at once, although Tennessee does not maintain a borrower database. Consumers must present a written statement to their lender instead as the only proof of having no outstanding loans. Rollovers are prohibited under state law, but you may extend your payment plan with your lender’s agreement if you need help paying off your loan.
Tennessee payday loans are available from traditional storefront lenders and online. Lenders who are located out-of-state can obtain a Tennessee payday lending license to provide cash loans to resident consumers in the state. Always check your online lender’s credentials to make sure they’re legitimate and not trying to run a payday loan scam. You can double check a lender’s license with the state financial regulation board and make sure they’re legitimate by checking the Better Business Bureau for any registered complaints.
Don’t just assume that payday loans are your only option for quick cash in an emergency. Always explore all your available options first, from savings accounts to friends and family, to borrowing a more affordable personal loan from a bank. Think your credit isn’t good enough for a bank loan? You may surprise yourself. Some banks have lowered their credit score requirements in response to the economic stress, making long-term financing more accessible to the average consumer who may not have perfect credit.
Always consider your options to determine if a Tennessee payday loan is right for you.