Payday Loans are Legal in Mississippi

Beware of predatory lending

Payday Lenders in Mississippi

Payday loans are a popular option for residents of Mississippi who find themselves facing unexpected expenses that need to be paid before their next paycheck arrives, with one in four residents relying on them. These short-term loans are used to bridge the gap between bill payments and payday but they do come with high interest rates and fees that can make them difficult to pay back. In fact, the average interest rate on a payday loan in Mississippi is 521%, one of the highest in the nation.

According to the Mississippi Center for Justice, payday lending results in over $270 million in fees annually. Most payday lenders do not check a borrower’s credit history, making it easier for borrowers with poor credit to get these loans but it also increases the risk of default. Mississippi law does regulate the maximum amount of payday loans that can be taken out in addition to the fees and interest rates that lenders can charge.

Mississippi has the highest concentration of payday lenders per capita in the United States. With over 700 payday lenders operating in the state, it is very easy to find a lender willing to loan the funds needed, but it also makes it hard to determine the best option. Borrowers should compare each lender’s terms and they should always verify their license with the Department of Banking & Consumer Finance to ensure they are a legitimate lender.

Payday Loan Laws

Mississippi laws surrounding payday loans are designed to protect consumers from predatory lending practices and ensure that lenders follow the state’s guidance. The legal codes limit the amount of interest that can be charged and the fees that can be added on.

Payday loans are regulated by Miss.

Loan Terms and Conditions

Maximum loan amount: $500

Maximum Interest Rate: 521%

Minimum loan term: 28 days for loans between $250 and $500

Maximum loan term: 30 days

Number of rollovers allowed: None

Finance Charge: Less than $250 = $20 per $100 borrowed; More than $250 = 21.95 per $100 borrowed

Legal action: 3 Years

Certified Payday Lenders in Mississippi

Company Name	Company score	License Status
All American Check Cashing, Inc.	7.8	Valid
Advance America, Cash Advance Centers, Inc.	7.5	Valid
MoneyLion Inc.	7.2	Valid
ENOVA INTERNATIONAL, INC.	6.8	Valid
Tower Loan of Mississippi, Inc.	6.1	Valid
COMMUNITY CHOICE FINANCIAL, INC.	5.7	Valid

History of Mississippi Payday Loans

Throughout its history, payday lending in Mississippi has undergone a series of changes that have allowed lenders to charge exorbitant interest rates and fees. Before 1998, all lenders in the state were subject to a 36% APR usury cap, which included those offering small loans. However, in 1998, payday lenders were exempted from this regulation, opening the door for them to charge as much as $21.95 per $100 for loans of $400 or less. Further changes in 2003 permitted loan terms ranging from 7 to 30 days, resulting in APRs ranging from 267% to a staggering 1144%. Although there were attempts to remove the exemption, the 2012 Check Cash Cashing Act instead made payday lending permanently legal in Mississippi, with a loophole that enabled lenders to charge triple-digit interest rates. Despite subsequent efforts to close the loophole, the industry continues to operate in the state, with the approval of installment-loan legislation in 2016 further cementing its place.

State Resources

How to file a complaint

The Mississippi Department of Banking and Consumer Finance provides resources to help borrowers understand their rights and responsibilities when taking out a payday loan. There is an online complaint form that can be filed to initiate an investigation against a lender. The complaint and any supporting documentation is sent to the lender and they will have 30 days to respond. At the conclusion of the investigation, borrowers will receive a letter with their findings and actions against the lender, if any.

Mississippi Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

There are several options for repaying a Mississippi payday loan. Contact the lender first and explain your situation. By doing this, borrowers may negotiate a repayment schedule that helps them by lowering amounts owed, increasing payment periods or decreasing interest rates. Refinancing to a loan with a lower rate of interest may be another good option. As a very last resort, there is always the option to file bankruptcy in order to get the loan discharged. You should always consult an attorney before considering bankruptcy.

Support Resources

Types of Quick Loans in Mississippi

Title Loans Title loans have become a popular option for Mississippi residents in need of quick cash. These loans allow borrowers to use their vehicle title as collateral in exchange for a loan. The amount of the loan is typically based on the value of the vehicle but Mississippi does limit the maximum to $2500. The loan term limit is restricted to 30 days, but can be renewed if the borrower pays at least 5% of the base amount. Title loans can be appealing to those who have poor credit or who are unable to obtain a traditional loan, but they come with high interest rates and fees that can make them difficult to repay. Furthermore, if a borrower is unable to repay the loan, the lender can repossess the vehicle and immediately sell it without any judicial process. It's important for borrowers to carefully consider all options and to have a solid repayment plan in place before taking out a title loan.

Installment Loans Installment loans can be a good option for Mississippi residents in need of quick cash and are a great alternative to payday loans. Instead of repaying the loan in full at the next payday, the terms usually let them pay it back over a period of several months. They are more manageable for those who need large amounts of money. However, they come with high fees and interest rates. Before accepting a loan, it's crucial that borrowers carefully read the terms and make a repayment plan to avoid any additional fees or financial stress.

Lines of Credit Lines of credit are a flexible option for Mississippi residents who need access to funds on an ongoing basis. Similar to a credit card, a line of credit allows borrowers to withdraw funds as needed up to their credit limit. Borrowers are typically required to make minimum payments each month, but they have the flexibility to repay the balance in full at any time. While lines of credit can be convenient, they can also come with high interest rates and fees, especially if the borrower exceeds their credit limit or misses payments.

Alternatives to Payday Loans in Mississippi

Personal Loans

Personal loans in Mississippi are a popular way to finance expenses and are usually unsecured. This means that the borrower does not need to provide collateral for the loan. Rates and terms of interest can differ depending on the lender, and borrower's history and some lenders will require a certain credit score or minimum income to qualify while others are more flexible. Borrowers are encouraged to shop around, compare terms and rates from different lenders and find the loan that best suits their financial needs.

Home Equity Loans

Home equity loans in Mississippi are popular because they allow homeowners to access funds for home improvements or even non-home related expenses like college tuition. Home equity loans usually come with fixed-rate and have terms of five to thirty years, depending on the amount of equity that a homeowner has built up in their home and their creditworthiness. It is important to keep in mind that a home equity loan can put your house at risk, as lenders have the option to foreclose if the borrower fails to pay.

Construction Loans

You can use construction loans to build a house or commercial property. These short-term loans are used to cover the costs of materials, labor and other construction expenses. The terms and conditions of the loan vary between lenders, but most require a 20% upfront payment. Borrowers are required to show a good credit history and that they have the means to repay their loan on time.

Bad Credit Loans in Mississippi

Borrowers with low credit scores can benefit from Mississippi bad credit loans. These loans can help people with bad credit to rebuild and get on track since they can provide funding when other options are not available. However, they usually have higher interest rates than traditional loans. It is best to compare the rates and terms of these loans offered by many lenders in Mississippi before making a decision. It is also important to ensure that you can afford your loan payments before taking out the loan. Credit score improvement is dependent on timely loan payments.

Mississippi Small Business Loans

Mississippi provides several types of small business loans with different requirements and terms:

SBA loans: The Small Business Administration offers loans through its network of lending partners for eligible small businesses in Mississippi.
Mississippi Development Authority (MDA) Loans: The MDA offers several loan programs for small businesses in Mississippi, including the Small Business Assistance Program, the Rural Impact Fund, and the Energy Efficiency Revolving Loan Fund.
Minority Business Enterprise Loans: The Mississippi Minority Business Enterprise Loan Program provides loans of up to $100,000 to minority-owned small businesses in the state. The program is designed to help these businesses grow and create jobs in underserved communities.
Invoice Financing: Invoice factoring loans allow businesses to sell their accounts receivable at a discount to a lender in exchange for immediate cash.
Equipment Financing: Equipment financing allows small businesses to purchase new equipment or upgrade existing equipment. This type of financing is typically secured by the equipment itself, making it easier to qualify for than other types of loans.

VA loans in Mississippi

VA loans are a popular mortgage option for eligible military members, veterans, and their surviving spouses. The Department of Veteran Affairs backs these loans and offers several benefits, including no down payment requirements, lower interest rates, and no private mortgage insurance (PMI) requirements. VA loans can be used for various purposes, including home purchases, refinancing, and home improvements but have a cap of $726,200 for all counties in Mississippi. Mississippi veterans looking to secure a VA loan must meet specific eligibility requirements in order to be considered, such as serving a minimum active duty term or being the surviving spouse of a deceased veteran. Overall, VA loans are a valuable financial tool for eligible military members and veterans looking to purchase a home in Mississippi.

Mississippi Student Loans

Many options are available to Mississippi students to help finance their college education. These options include:

Federal Student Loans: Mississippi students have access to federal student loans, an invaluable financial resource that they can use for college tuition and other associated costs.
Mississippi Physician and Dentist Scholarship Program: Students can get up to $30,000 per year through this program for up to four years. It is available to Mississippi residents who are pursuing a career in medicine or dentistry.
Parent PLUS Loans: Parent PLUS Loans are federal loans that allow parents of dependent undergraduate students to borrow money to pay for their child's education. These loans have fixed interest rates and flexible repayment plans.
Private Student Loans: Offered by banks, credit unions, and other private lenders, and often have higher interest rates than federal or state funding. Students can use these to cover education expenses that federal loans don't cover.

Mississippi Income Information

According to the 2021 U.S. Census, Mississippi had a median household income of $49,111, significantly below its national median of $69,021. Mississippi’s economy is primarily based on agriculture, manufacturing, and energy production. The state’s top agricultural products include cotton, soybeans, and poultry, while its manufacturing sector produces goods such as furniture, textiles, and automobiles. The poverty percentage in Mississippi in 2021 was 19.4%, almost double the national average. Income and poverty levels vary drastically depending on the county. Madison County has the highest median household income of $71,621, while Holmes County has the lowest, at $24,074.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 26, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Mississippi. Accessed on April 26, 2023.

Mississippi Payday Lender Complaints

Below are trends associated with the top payday lenders in Mississippi, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
All American Check Cashing, Inc.	5
Advance America, Cash Advance Centers, Inc.	4
MoneyLion Inc.	3
ENOVA INTERNATIONAL, INC.	3
Tower Loan of Mississippi, Inc.	2
COMMUNITY CHOICE FINANCIAL, INC.	2
Total Complaints	64

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 26, 2023.

Most Common Issues

Complaint type	Count
Charged unexpected interest or fees	20
Struggling to pay loan	11
Received a loan you never applied for	8
Approved but never got the money	6
Payment not credited to account	5

What are the main reasons residents of Mississippi apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Jackson
Gulfport
Southaven
Biloxi
Hattiesburg
Olive Branch
Tupelo
Meridian
Greenville
Clinton

Madison
Pearl
Horn Lake
Oxford
Brandon
Starkville
Ridgeland
Columbus
Pascagoula
Vicksburg

Gautier
Ocean Springs
Laurel
Hernando
Long Beach
Clarksdale
Corinth
Greenwood
Natchez
D'Iberville

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Mississippi, you will typically need to provide your identification, proof of income, bank account information, and contact information.

Can I cancel my payday loan?

You can cancel your payday loan in Mississippi, but the cancellation period and requirements may vary depending on the lender and loan agreement. You will need to pay back the loan in full to cancel.

Can a payday loan lender garnish my wages?

Yes, payday lenders can garnish your wages but they must get a court judgment against you and they are limited in the amount they can take from your paycheck.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Mississippi as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

When will I receive my funds if I am approved for a payday loan?

You will receive your funds on the same day or the next business day, depending on the lender’s policies and the timing of your application.

What happens if I can’t repay my payday loan on time?

You should contact your lender as soon as possible to request they put you on a payment plan, but they are not legally obligated to do so.

When could I apply for another payday loan?

Mississippi allows borrowers who pay off a payday loan to apply for another one immediately.