Payday Loans in Tennessee
Nashville. Memphis. Mountains, caves, rivers, and plenty of other gorgeous attractions. Tennessee is known for its music, its food, and its soul. It's also known for its payday loan establishments. With more than 1,200 of them calling the state home (compared to fewer than 300 McDonald's locations in the state), Tennessee has the fifth largest number of payday loan places in the country.
Despite the large number of payday loan establishments in Tennessee, the laws and regulations surrounding them still tend to benefit the consumer. For this reason, this type of short-term lending is preferable when residents of Tennessee find themselves in financial binds.
Why Do Residents of Tennessee Use Payday Loans?
Despite having a fairly low cost of living in most of the state, urban residents especially can see the disconnect of finances between paychecks. People in the state have an average annual income that is nearly $10,000 below the national median income. For this reason, many families with lower incomes use payday loans between pay checks to ensure they keep food on the table and gas in the car while still paying rent and utilities. Sometimes, people decide to take out a payday loan because of unexpected bills, such as medical bills or the need for a car repair. Regardless of the reasons, there is no doubt that many Tennesseans rely on payday loans to make ends meet at least sometimes.
Payday Loan Regulations in Tennessee
Payday loans are legal in the state of Tennessee under Tenn. Code Ann. 45-17-101 et seq. However, there are plenty of protections in place to ensure the borrower is not taken advantage of. A consumer cannot borrow more than $425 (or $500 if it is a check) and the loan term is a maximum of 31 days with a maximum finance and fee rate of 15% of the check's face value. Borrowers cannot have more than three loans at the same time and cannot borrow more than $500 combined. However, the state does allow the payday lenders to charge an annual percentage rate of up to 459%.
Statistics About Payday Loans in Tennessee
The state of Tennessee provides an average of nearly 3,800 payday loans per year, totally more than $1 billion when you factor in fees. The average borrower will pay almost $500 in fees to borrow $300 for an extended period of time (five months or longer).
In Tennessee, the maximum fee percentage is 15%, which equals out to about $17.65 on a $100 loan. This includes a 2-week loan term and a 459% APR. Someone who takes out payday loans in the state can have up to three at once, but they cannot borrow more than $500 combined. Rollovers are not permitted, which means the borrower cannot renew or consolidate his or her payday loans.
On the plus side, there are other benefits for consumers. In the state of Tennessee, someone can create a repayment plan for his or her payday loan equal to four monthly installments. There is also a cooling off period, which is the next business day after two continuous loans were repaid.
The state imposes collections limits as well. If, for some reason, you fail to repay your loan, the lender cannot take criminal legal action against you. This means that you cannot be arrested or taken to jail for failure to repay a payday loan. The lender can sue you in civil court but cannot sue for additional damages. If you go to civil court, you will only be responsible for what you owe the company and for court costs, not any additional charges.
What makes Snappy Payday Loans different?
We're working hard to restore the reputation of payday loans, cash advances and other short-term lending services. We believe that all kinds of people should have access to the financial products which can help them to deal with unforeseen expenses even if they have less than exemplary credit records. Unfortunately, the reputation of payday loans in Florida has been marred by less than reputable lenders who prey on the financially vulnerable.
If you've made the informed decision to take out a payday loan you can do so safe in the knowledge that Snappy Payday Loans can help you do so in the safest way possible. Remember we are not a payday lender. Instead we put you in touch with the right payday loans direct lenders in Florida to suit your needs, helping you to make a well informed and zero-obligation decision that's right for you and your household.
Know Your Rights in Tennessee
Payday lenders in the state of Tennessee must be licensed and certified. In addition, they must follow all laws regarding percentage rates and fee limits, term limits, and maximum loan amount limits. The legislation surrounding payday lenders is designed to keep borrowers from falling into the trap of re-borrowing the same amount of money each time they pay it off. If you have questions regarding your rights as a borrower in the state of Tennessee, you can contact the Tennessee Department of Financial Institutions. It is located on Rosa L. Parks Avenue in Nashville.
Tennessee Payday Loans and the New 2019 Laws
In Spring 2019, the federal laws surrounding payday loans changed, lessening protections for consumers along the way. For now, state laws in Tennessee remain the same, and consumers are still afforded the same protections as long as they borrow from companies regulated by the state of Tennessee. However, if they borrow from an out-of-state lender, such as many of the ones available over the internet, they will be subject to federal law, not Tennessee law. It is also important to note that some organizations are seeking to bring forth new laws that further regulate lenders, so changes could come in the future.
How the Loan Process Works
When you apply for payday loans through our website, the process is completely secure and confidential. Our 128-bit encrypted connection transmits your application to our partners without the risk of interception by third parties.
We pride ourselves on our simple, streamlined application process. Most people are approved if they meet the following requirements:
- Have an active checking account in good standing
- Are a permanent resident or citizen of the United States
- Are age 18 or older
- Have had a job for at least one month
- Can supply a working phone number and email address
The Types of Lenders Available
You can get payday loans and cash advances in Florida either online or in person. Scores of brick-and-mortar lenders operate in Florida, and some of these lenders also operate online. You can go in person during the lender's business hours or call the lender and begin the process that way. Alternatively, you can fill out an online request form if the lender has one.
Then there are online-only companies such as Snappy Payday Loans. We offer a variety of helpful features:
- With our quick service, most loans distributed within one business day.
- Loans are deposited right into your bank account.
- Lenders are often willing to work with applicants who have bad credit.
- You only have fill out a simple online form.
We do not loan you the money, but we use the information you submit to match you with a direct lender (assuming you qualify for a loan). This online option is convenient because you don't have to leave your home and wait in line or wait for a business to open. We process applications on secure servers 24 hours a day, seven days a week.
If you want a loan as soon as possible, check out our easy online form. Start the process here, and see if you're matched to a lender. If you don't like the rates or terms proposed, you are under no obligation to accept the offer. It's a win-win situation in which you get to see whether you qualify and what the terms are like.
Frequently Asked Questions
What Is the Difference Between Stores and Online Payday Lenders?
Going to a store ensures you're working with a location operating under Tennessee law, but borrowing online could mean you work with a lender operating under the laws of another state. Otherwise, both processes are mostly the same. Going into the store typically takes about 15 minutes and has you leaving with cash in hand but applying online could mean waiting up to 72 hours to receive your funding (more over a holiday weekend).
How Do You Know if You Are Eligible for a Payday Loan?
Being eligible for a payday loan is quite simple. You must be at least 18 years old, have a verifiable source of income, and have a bank account (checking is preferred, but some lenders do allow savings accounts as well). In addition, you will need to provide your social security number and a valid driver's license or state-issued identification card. By gathering your pay stubs and any other information before starting the application process, you can ensure it goes more smoothly.
Do Lenders Check Your Credit?
Most lenders do not check your credit score through the three personal credit bureaus, but they may verify it through other third-party sources. However, bad credit isn't likely to deter a lender from helping you. After all, most of them realize that people in need are most likely to use their services. Lenders are much more interested in whether you have a verifiable income than in your current credit score.
What Happens if You Cannot Repay Your Loan?
It is very important to repay any loans you take out on time when at all possible. Although most lenders do not report to the three major credit agencies, they will still leave a negative remark should you try to use other lenders in the future. In addition, although they sue you in a criminal court of law, a lender can sue you for the money you owe them (plus court costs) in civil court.
Who Can You Contact for More Information?
If you have further questions or concerns, be sure to contact the Tennessee Department of Financial Institutions in Nashville. They can help you by answering questions, addressing concerns, or pointing you in the right direction if you were taken advantage of by a lender.
Kelly Stone - President
Kelly Stone - President
Kelly is a graduate of Northwestern University's Kellogg School of Management with a Master's Degree in Finance. She began her career in the short-term lending industry in 1996. Starting with one store, she grew the business to over 50 storefronts offering payday loans. As the industry started to shift online, she changed gears and started Snappy Payday Loans, allowing consumers nationwide to apply online for a payday loan. Through relationships and time, Kelly has built a large network of lenders that offer loans that Snappy utilizes today.