Tennessee Cash Advance Consumer Resource

In the United States, there are a total of 25 states that have laws and regulations on making and receiving cash advance loans. These rules and regulations were enacted to protect consumers and make them better informed about the lending practices of the cash advance loan industry as a whole. It is interesting to note that the two leading states in providing cash advance loans are California and Tennessee. By definition, a cash advance loan is short-term loan in which an individual is borrowing money against their next paycheck and promising to pay that money back with interest at a specified date which would be their next pay day. These pay day loans can be obtained for any multiple of reasons and are an extremely effective way of obtaining needed cash quickly in an unexpected emergency situation or as any special occasion might arise. In order for an individual to receive a cash advance in Tennessee, the person must comply with the laws which apply to obtaining a loan. So, it is important to have a clear understanding of the state’s rules and regulations that govern both the lender and borrower in the process of receiving a cash advance in Tennessee.

Rules and Regulations Governing Companies Offering a Cash Advance In Tennessee

Tennessee legislation specifically refers to cash advance companies as any person or entity that holds a check for a specified period of time before they present the check for deposit at the borrower’s bank and collect the money. Additionally, all pay day loan companies are regulated in the state of Tennessee and must be licensed by the Department of Financial Institutions. Because of this, there are specific requirements each company must meet on a yearly basis in order to be licensed in each location the company operates. For example, loan companies that offer a cash advance in Tennessee must have a net worth of $25,000.00 and post their license, which is renewed yearly, in a prominent location within each business location. Additionally, the identity of any person who has more than a 5 percent ownership stake in the company must be disclosed during the licensure process and made available on public record. The rules and regulations that govern the cash advance companies in Tennessee are strict, and the penalties for breaking any of these rule and regulations can be as high as $1000.00 per occurrence and loss of license. So, generally, cash advance companies are very careful to follow the rules set for forth by the Depart of Financial Institutions for providing a cash advance in Tennessee.

What Every Consumer Should Know About Obtaining a Cash Advance in Tennessee

Additionally, as a consumer who is looking into obtaining a cash advance, it is important to completely understand the rules and regulations that apply to a borrower who is obtaining a cash advance in Tennessee prior to signing any paperwork. According to Tennessee legislation, the length of a pay day loan cannot exceed 31 days, and each cash advance loan cannot exceed $500.00. However, as with so many other pieces of legislation, there are loopholes in the wording of the legislation that covers obtaining a cash advance in Tennessee. For example, while the law states that an individual can only receive three pay day loans at a time, as long as the check does not total more than $500.00, for each check issued, the borrower could actually be obtaining money for several lenders at one time as long as the amount is specified. It is also extremely important to note that the effective Annual Percentage Rate (APR) for a cash advance in Tennessee is limited to a maximum amount of 15%. If the paperwork presented by a company indicates anything higher than this amount, it is a red flag that possible rules and regulations are not being followed. Prior to signing any pay day loan documents, the customer should obtain a clearly written explanation explaining the terms of the cash advance in detail, the various fees that will be charged, and the specific date the check that is being held will be deposited in the bank for payment.

A Few Final Words on Obtaining a Cash Advance in Tennessee

There are many different pay day loan companies offering cash advance services in Tennessee. This is the exact reason why the State of Tennessee enacted legislation to govern their activities and ensure that consumers are aware of all the loan details and completely understand their obligations as pay day loan borrowers. It is also important to remember that a cash advance loan is meant to be a short-term loan. In order to be a responsible borrower, the pay day loan consumer must endeavor to pay the cash advance loan, including the interest rate that has been applied, off in a timely manner without any extensions to the loan. Informed pay day loan consumers should not be afraid of obtaining a needed cash advance in Tennessee from a reputable loan company. Remember to ask any questions regarding the items in the loan documents that seem unclear prior to signing any of the documents and to investigate customer satisfaction rates for any loan company that may be seen as a potential lender. Ultimately, cash advance loans are a great way to get in influx of needed cash quickly when finances are stressed or an unexpected situation occurs that necessitates cash on hand.