By Shawn Martin
Tennessee state payday loan laws follow many other states that have passed legislation authorizing payday loan companies to do business in their appropriate states.
They claim to be written to protect the borrower. Lets take a look and see.
Tennessee allows payday loans to be taken out for 31 days at a time.
This would protect the borrower if they did not allow any loans under the 31 days thus avoiding any roll over charges, which can bury the borrower in payday loan debt fast!
A two week loan rolled over becomes two two week loans, in essence.They fail on this point to protect the borrower.
The loan cap on a payday loan is $500.00, but this offers really no protection to the borrower as they allow more than one payday loan at a time. Kinda a mute point. Fails at protecting the borrower again.
The interest and fees allowed are just plain out there, and they do not even try to hide behind any laws with these two points.
The interest allowed is 15% of the face value oif the check, and the fees are set up so if you borrowed $100.00 for 14 days and did not roll it over, which most people do leading to huge charges added to the loan, you would be paying and APR of 459% Fails to protect the borrower again!
I do not know about you but I am kind of seeing a trend here 🙂
We have established these companies should be avoided at all costs as they are set up to make the loan companies rich at the borrowers expense.
What if you are already trapped in payday loan debt and you have the companies calling you at work and home, and calling all your references you put on the loan application?
They are then threatening to take you to court and garnish your wages, what do you do now?
We can help!
Well, fortunately, we can help you with your payday loan debt.
I hope this information helps people understand that these companies are out to get rich at your expense, and they are brutal in their collection process. Do not use these companies and if you are trapped in payday loan debt give us a shout!