Tennessee · checked October 24, 2026

Payday loans in Tennessee: the rules and your way out

Payday loans allowed, with limits

Licensed deferred presentment providers may make payday loans of up to 31 days for a fee of up to 15% of the check's face amount, with a $500 aggregate limit.

Law: Tenn. Code Ann. §§ 45-17-101 et seq. (Deferred Presentment Services Act), esp. § 45-17-112; rules Tenn. Comp. R. & Regs. ch. 0180-28. Statute values come from the TDFI consumer notice dated August 2012. The current Tennessee Code could not be read.

We could not confirm every detail below against the current statute text. Treat them as a starting point and check with the Tennessee Department of Financial Institutions (TDFI) before relying on them.

Tennessee's rules, line by line

Largest loan: $500 aggregate face value of outstanding checks (per TDFI 2012 consumer notice citing Tenn. Code Ann. § 45-17-112(o) and (p)).
Longest term: 31 days (TDFI notice citing § 45-17-112(d)).
Fee or rate cap: Fee may not exceed 15% of the face amount of the check (TDFI notice citing § 45-17-112(b)).
Renewals and rollovers: Loans may not be renewed or consolidated into a new loan; a transaction in violation is void and unenforceable (TDFI notice citing § 45-17-112(q)).
Loans at once: TDFI notice says a licensee may hold no more than 2 checks from one customer at a time (§ 45-17-112(o)) and a borrower is limited to 3 outstanding transactions overall (§ 45-17-112(p)), with $500 aggregate face value in each case.
Limits on collection: On a returned check the lender may sue but may collect only the face amount and court costs actually incurred, with no other fees or attorney's fees; no borrower can be convicted under the worthless check law, Tenn. Code Ann. § 39-14-121 (TDFI notice citing § 45-17-112(i)).
Other rights: Agreement may not choose another state's law, consent to another jurisdiction, fix venue, or waive the Act; such clauses are void (TDFI notice citing § 45-17-112(s)). Internet, phone and fax lenders must be licensed (§ 45-17-103(a), quoted on TDFI's page).

If you are behind on a payday loan in Tennessee

Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

TDFI Consumer Notice, Deferred Presentment Services Act (Aug. 2012), read 2026-10-24
TDFI, Deferred Presentment, read 2026-10-24
TDFI, Deferred Presentment laws and rules links, read 2026-10-24
TDFI, File a Complaint, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.