Stuck in the middle of the United States, Tennessee often gets forgotten. While it isn’t the deep south, New England, or the rust belt, it is a unique state in the country.
The centers of Nashville and Memphis are some of the economic heartlands of the region, and even though they lack a stereotypical geographic location, they are an important part of the country. As with most states, the economic recession has hurt the Tennessee economy. Many have started taking out payday loans, crushing families under a mountain of debt. Tennessee payday loan laws have been developed to directly combat this problem.
Tennessee Payday Loan Laws and Interest Rates
As far as the interest rates are concerned, Tennessee has a poor record of protecting citizens from the big companies that want to lend them into the payday loan trap. The Tennessee payday loan laws permit some of the highest APR rates on a $100 14- day loan than anyone else in the country. With rates of 459% it is hard for many citizens to take a small loan and pay it back quickly. For this reason, it might be necessary for you to consider taking out loans some other way.
The Tennessee payday loan laws may be a function of the strong lending lobby in many states. Even though the annualized percentage rate for the loan is quite high, the industry can claim much higher if the free market allows it to. In that respect, the people of Tennessee are somewhat lucky.
Licensing and Tennessee Lending
Like other states, there are some penalties and restrictions regarding licensing services. Companies that try to lend money to people must abide by some of the registration and licensing laws that Tennessee has passed. Nonetheless, these laws are also somewhat lenient on the companies compared with the other states. The one and only state-licensed lender is PayDayOne, which has a very good track record in the state and has done its job well.
If you are in Tennessee and need to borrow money as quickly as possible, you may have no choice. However, Tennessee payday loan laws are not the easiest to work with. Often they do not always have the customer’s best interest in mind compared with other states.
