Articles Posted in Payday Loans

payday-loansUnder the Mississippi Check Cashers Act, the maximum amount you can borrow is $400.  For example, a borrower writes a check for $400, pays the $72 fee, and receives $328 in cash.  You may have more than one payday loan with a lender; however, the total amount may not exceed $400 (including the fee). It is illegal to write a payday check for more than $400.

Mississippi law allows a lender to charge no more than $21.95 for every $100 dollars borrowed.  It is illegal to renew, extend or rollover your payday loan by just paying the fee. The payday loan must be completely paid in full before you can enter into another payday loan transaction.

If your check is deposited and returned unpaid, the lender may charge you only 1 NSF fee and only if it was disclosed in the agreement.  If the court awards a judgment to the lender against you as a result of your returned check, the lender may recover court costs, attorney’s fees as well as any court awarded fees.

NO!!!  The lender cannot threaten or use criminal prosecution to collect.  However, the lender may file an action against you in civil court.  If you cannot repay the loan, you may request that the lender place you on a payment plan.  However, the lender is not legally required to grant your request.  If you wish to file a complaint regarding a payday loan vendor in Mississippi, please call either or both of the following offices:

Department of Banking & Consumer Finance – 1.800.844.2499

Consumer Protection Division of the Office of the Attorney General – 1.800.281.4418

dollarsPayday loans are also referred to as cash advance loans, delayed deposit loans and deferred presentment loans.  In a payday loan, a borrower writes a check to a lender in exchange for a short-term cash loan.  The lender does not cash the check until the borrower’s next payday, up to 30 days.

The lender will require you to sign an agreement disclosing the amount of money you have requested, the Annual Percentage Rate (APR) as well as other related information.  The lender will also require you to give them a personal check with an amount that reflects the loan plus the fee.  The agreement may authorize the lender to automatically withdraw the funds from your bank account.  You may redeem the check on or before the due date, which can be up to 30 days, if not, your check may be deposited or the loan amount will be automatically withdrawn from your account on the due date.

Warning:  You are responsible for evaluating whether a payday loan is right for you. Payday loans are not intended to meet your long-term financial needs.  The long-term use of payday loans may cause severe financial hardship.