Mississippi Payday Loans Laws
More than a dozen businesses offering short-term loans are found along Ellis Avenue in west Jackson. What does the state law have to say about the operations of these kinds of businesses?
For starters, Mississippi payday loans are considered legal. However, the fact that these businesses are legitimate does not shield them from the regulations set in place. The Check Cashers Act is responsible for monitoring all lending activities in the state of Mississippi.
Policies Set in Place for Cash Advances
- Payday loans should not exceed $500
- APR for a $100 loan given for two weeks must not exceed 520%
- Loan terms for loans less than $250 should not be for more than 30 days
- Loans up to $500 should not exceed 28-30 days
- No rollovers are allowed
Lenders are expected to repay the loan in full on the due date. If you fail to pay, a lender has a right to collect a one-time “insufficient funds” fee. Court fees may sometimes be included in case of disclosure.
The maximum interest rate for loans less than $250 is $20. Loans from $250-$500 have a maximum interest rate of $21.95. An agreement showing all transactions, including the interest fee amount, needs to be provided by the lender.
Location Requirements for Mississippi Cash Advances
Payday lenders in the state are obliged to comply with various requirements to their locations. The first rule is that every business should obey the zoning laws by having a definite legal postal address. The payday lending store should not be less than 100 square feet.
Payday shops are forbidden to place their stores near institutions such as a title pledge office or a pawnshop.
Your Responsibilities as a Borrower In Mississippi
Borrowers too have their fair share of responsibilities in regard to the loans they take out. Proper identification is compulsory in the payday lending process. In fact, a lender cannot advertise its services without making it clear that a borrower will be required to provide proper identification.
All borrowers who have committed fraudulent actions will be reported to the Department and District Attorney for the Judicial District where the loan was taken. However, a lender does not have the legal right to criminally prosecute a borrower for late payments.
If you have numerous Mississippi installment loans that are currently in default, you may be reported to the authorities. You can avoid this messy situation by contacting each of your loans company and agree on how you plan to clear the debt.
Mississippi Cities That Have Imposed Restrictions