Max Loan Amount:$500
In the state of Tennessee payday lending is legal according to Tenn. Code Ann. 45-17-101 et seq.
Tennessee has a similar way of loan regulations like in other US states regarding the term limit, which is 31 days. The maximum loan amount is $500. As the law states that the limit is $425 and $500 if it is a check, accordingly, the borrower may take a multitude of cash advances from different lending companies –3 total with 2 from 1 licensee. In fact the lender can charge $15 for a check or a $17.65 fee for $100 the borrower gets. Every payday loan in the state has the annual percentage rate which is 459%. Payday loans are not rolled over in the state and lenders are prohibited to take any criminal actions against borrowers.
There are a multitude of payday loan institutions functioning in the state of Tennessee. In fact there are about 1344 payday loan companies in Tennessee and this
number might be higher due to the high growth rate in the industry.
25 states in the US have already passed serious legislation to regulate the functioning of payday loans and the state of Tennessee is among those states.
The terms of payday loans, limits and requirements are regulated by Tennessee state laws. There are penalties implemented on the lenders who don't follow the state laws or violate the regulations.
A company should obtain the license at the Department of Financial Institutions so that to be able to set up payday loan business in Tennessee. To get the license the company should possess $25,000 in net worth and have records available for a person owning 5% and more of the lending company.
Any lending company functioning in Tennessee and violating the laws will be prosecuted and have the license revoked. For violating the state law, the lending company will get a fine of $1,000.
More information about Payday Loans in Tennessee: http://www.tennessee.gov/tdfi/
Category: Payday loans