If you need cash badly and the next paycheck is still a few days away, then applying for a payday loan is highly recommended, when there is no other recourse left as this type of loan comes with high interest rate. Nevertheless, even with the exorbitant rate borrowers need not worry, as there are laws that will keep payday lenders from taking advantage of their need for immediate cash, especially when the loan taken in Mississippi. This article talks about the payday loans in Mississippi, also known as Check Cashers Act.
Limitations on Fees and Loan Amounts
In Mississippi, the caps on payday loan are $400, while the charge is 18% of the total face value of the check. For example, a 14 day loan, will get a maximum loan charge equals to 572% APR and the loan cannot go beyond 30 days.
It is a fact that most borrowers won’t be able to pay the loan on time, nevertheless a payment is still required by the lender as they have a post dated check issued to them or electronic signature allowing automatic loan deduction. Now, in order to avoid check fee, borrowers usually ask lenders to delay the depositing of check, then lender just charge additional fee. This practice is called rollover, and under the Mississippi law, it is prohibited.
Payday Loan Law Discrepancy
Payday loans these days can be secure online and locally, and it is a fact that when loan applied online most of the time there is no postdated check required by lender. Without the check, the Check Cashers Act does not apply to online payday loan, unless the lender are also licensed for check cashing and have local shop. If not, the Small Loan Regulatory Act applies, where the caps interest is at 36 percent.