Payday loans in Tennessee
The Deferred Presentment Services Act allows payday loans in Tennessee if the lender holds a license from the Department of Financial Institutions.
- Payday lending
- Allowed
- Max cost
- $15.00 per $100 borrowed
- Top amount
- The total face value for outstanding checks is $500.
At that cap, a $100 loan over 14 days can carry $15.00 in fees: $115.00 back in total, close to 391% APR. Because the $500 cap includes the fee within the check face, you receive at most $425 in cash, while the fee on that check equals $75.
Are payday loans legal in Tennessee?
Yes, Tennessee allows payday loans when a lender operates under the Tennessee Deferred Presentment Services Act with a proper license. You may hold no more than two active loans from a single lender, or three loans total from all lenders, with a combined limit of $500. Your check or electronic payment form can remain with a lender for a maximum of 31 calendar days. On a check, the face amount means the dollar amount written on that check. No fee may exceed 15 percent of that amount; $15 per $100 is the cap.
Lenders using online, phone, or fax methods must also possess a license issued by the Tennessee Department of Financial Institutions. Agreements from these lenders cannot adopt another state's law, and any renewal with the same lender is void, which means it has no legal force. Check the department website for the lender's license before you accept a loan, or send a complaint by mail or through the internet.
- Amendments from 2012 require online and phone payday lenders to keep a Tennessee licence if they encourage a consumer in the state to borrow.
- Two checks per lender, three open payday checks overall, and $500 as the combined face-value ceiling are the borrower's limits.
- If you renew or consolidate a payday loan with the same lender, the new deal becomes void.
- The state worthless check law cannot be used to convict borrowers over a payday check.
- Flex loans are open-end credit lines licensed in Tennessee that pair 24% interest with a daily fee reaching no more than 0.7%.
Tennessee payday loan laws
- Law in force
- Tennessee Deferred Presentment Services Act
- Cited as
- Title 45, Chapter 17 of the Tennessee Code (45-17-101 and following; fee caps and limits in 45-17-112)
- Fees under the law
- must stay at or below 15% of the check's face amount
- Most you can borrow
- The total face value for outstanding checks is $500.
- How long a loan runs
- The period lasts 31 calendar days.
- Rollovers
- You cannot renew or consolidate with the same licensee since those transactions are considered void.
- Loans you can hold at once
- Any one licensee may hold two checks, while three checks total are permitted across all lenders.
- Installment lending limits
- Under the Flexible Credit Act, flex loans carry interest of 24% per annum. A customary fee may also be charged at up to 0.7% per day on the average daily principal balance, with balances limited to $4,000.
Also checked against tn.gov. Full statute text.
Online lenders that list Tennessee
Eleven companies we track say they lend in Tennessee: 3 online installment lenders, 1 store and online lender, 6 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 ACE Cash Express | Store and online | 122.4% to 769.1% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Tennessee
A state licence is required in Tennessee before offering payday loans by phone, fax, or the internet to a consumer located in Tennessee. A loan agreement also cannot waive the act or choose another state's law.
On the immunity claim tribal lenders make, see are tribal loans legal.
Six tribal lenders we track list Tennessee as a state they lend in. Three of the six publish an APR, from 73.7% to 725%.
| Lender | Posted APR |
|---|---|
 Mobiloans | 73.7% to 405% |
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Tennessee and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Tennessee | Allowed | $15.00 per $100 borrowed | The total face value for outstanding checks is $500. |
| Alabama | Allowed | $17.50 per $100 borrowed | $500 |
| Arkansas | Banned | 17% APR | None allowed |
| Georgia | Banned | None in the law | None allowed |
| Kentucky | Allowed | $15.00 per $100 borrowed | All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850). |
| Mississippi | Allowed | $20.00 per $100 borrowed | Per customer at any time, the most you can get is $500 including fees. |
| Missouri | Allowed | Fees and interest can go up to 75% of the loan, and that includes renewals. | You may owe no more than $500 at once to one lender and its affiliates. |
| North Carolina | Banned | None in the law | None allowed |
| Virginia | Only as installments | None in the law | $2,500 |
Tennessee loans with no credit check
Installment loan rates: Under the Flexible Credit Act, flex loans carry interest of 24% per annum. A customary fee may also be charged at up to 0.7% per day on the average daily principal balance, with balances limited to $4,000.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Tennessee
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Tennessee Department of Financial Institutions (TDFI).
- Had trouble with a lender? Report the lender.
Sources for Tennessee
- Nobody may provide deferred presentment in Tennessee through phone, fax, or internet unless they have a licence.; The law considers a lender to be doing business in Tennessee when it induces a local consumer to borrow.tn.gov
- The fee cannot go higher than 15% of the check face amount.; No one may hold a check for longer than 31 calendar days.; A single licensee can keep no more than two checks from one customer, with a total value not exceeding $500.law.justia.com
- According to TDFI, a borrower may have only three outstanding payday loans, which must total $500 or less.; The criminal worthless check law does not permit convicting borrowers.; An August 2012 consumer notice from TDFI details amendments that broadened the term 'check' to cover electronic payment authorizations.tn.gov
- Lenders of flex loans can charge interest rates as high as 24% annually.; Besides interest, flex loans permit a customary daily fee of up to 0.7%.; Balances on flex loans cannot exceed $4,000.law.justia.com
- The TDFI regulated entities page directs deferred presentment licence searches toward NMLS Consumer Access.tn.gov
- You may submit a complaint to TDFI either by mail or through their online system.tn.gov