Payday Loans

Missisipi Payday Loan Laws

Payday lenders in Mississipi have to follow certain legal restrictions when it comes to approving and issuing short-term cash advances. Though Mississipi payday loan laws still allow lenders to charge three-digit APR, certain restrictions have been imposed to protect borrowers from the viscous cycle of debt that these types of loan programs often create. If you find that your lender is not following the laws properly and that you are being treated unfairly and illegaly, you can file your complaint with the Mississippi Department of Banking and Consumer Finance. Their fax number is (601) 359-3557, phone number is (601) 359-1031, and address is 901 Woolfolk Building, Suite A 501 N. West Street Jackson MS 39201. Even if you do not have any complaint, you can contact them for more detailed information about your rights and legal options.

Criminal Action Is Permitted If Check Is Returned Due To Non-sufficient Fund

Mississipi payday loan laws allow lenders to file criminal lawsuits against those borrowers who first issue a check in the name of the lender and then that check is returned due to non-sufficient fund in their bank account. Such activities are considered in this state as fraudulent and a serious criminal offence. However, it is very important for you to keep in mind that if you have not issued any check and are just unable to make the repayment on the set due date because of your poor financial position, no criminal actions can be taken against you. Inability to pay off a debt because of financial hardship is not a crime and you cannot be sent to jail for that.

Repayment Plan Is Not Mandatory, But Rollovers Are Prohibited

As per Mississipi payday loan laws, if you make a default on the loan and are unable to make the repayment, there is no legal obligation on the lender to provide you the convicience of an affordable repayment plan, allowing you to pay off the loan in several small monthly installments. You can request for it, but lenders are not obligated to honor your request. The good news is that the state laws have strictly prohibited any provision for automatic rollover or renewal or extension of loan. It means no further interest or other fees (except the ones that have been disclosed in the agreement) can be charged on the outstanding balance that is due in your name. The only charges that are allowed include court-awarded fees and NSF fees (only if a provision for the same has been disclosed in the loan contract).

Maximum Number Of Loans And Maximum Loan Amount

Though Mississipi payday loan laws have not said anything specifically about how many outstanding payday loans a person can have in his/her name at one time, a maximum ceiling on the loan amount has been imposed, which is $400. You cannot borrow more than $400 on a single loan account.

Rate And Fees

Despite the restrcitions on automatic rollovers, payday loans are still very very expensive in the state of Mississipi. Lenders are allowed to charge an APR of up to 572% per annum. On a $100 of loan issued for a repayment period of fourteen days, lenders can charge 18% as interest and $22 as other finance charges.

Repayment Period

As per Mississipi payday loan laws, the length of the repayment period must not exceed thirty days.

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