Is there any Tennessee state law cocerning cash advance companies?
Danny asked:
I have several of them out n heard that I might have more than the law allows for Tennessee.. I didnt know the law at the time but I have heard it.
One Response to “Is there any Tennessee state law cocerning cash advance companies?”
There is a limit of 2 checks or $500 and their interest rates are $30 every 2 weeks or 390% per annum clear profit. If they were operating on a loan they wouldn't be paying more than say tops 10% – not a bad profit I'd say. They run it through a database to see how many checks you have out and how much they are, so don't worry about it.
You are far better off not paying something than getting involved with them or title pawn companies who are in business to steal your vehicle. They both charge extortionist rates and are sponsored by the big banks and legislators (the main ones who own the places) as a way to gouge the poor man. A pawnshop is a much better route to go but if you don't pay you forfeit, so be careful of that route as well.
Sell your TV, cut off the cable, go without a few meals, don't eat junk food, stop smoking, give up drinking, don't go bowling, don't buy lottery tickets or what every else you might do that isn't essential, but get out of their grips.
My husband and I had four of them and the way some of them operate they make you pay the whole thing back each time it is due whether you have a paycheck or not which can possibly have you writing bad checks just to pay them. Don't do it, as it does nothing but dig the hole deeper and you get in a worse situation each time it comes around. If you have gone the bad check route you are facing possible jail time and it isn't worth it to line their pocket with gold.
Regardless of how they tell you they will help you, in reality they make the situation worse. It got so bad we had to default on them and they tried telling us they would come after us for check fraud because the check wasn't any good, when in reality they knew the check was bad when they took it. We had already paid them something like 450% interest and so they had gotten a lot more than a reasonable return on the loan. All they really have is a promissory not with no security and didn't like it when I told them that but they had to back off. One of them has made some collection efforts and the phone harassment but there really is nothing much they can do other than bluff you. You would be wise to close the bank account they have checks on and open another one to guarantee they don't go to the bank and seize money you can't afford to give them that you may have written checks on. Not only would this cause you to have all kinds of bank fees but the people you had tried to pay could come after you for bad checks – another bad news situation.
My suggestion is have a garage sale or sell things on some of the boards, including Craig's List and eBay to pay them off or stop paying their extortion and let yourself breath. Most of the time they won't come knock on your door and even if they do, what can they do when you don't have the money. They are the modern equivalent of the old "Mafia" lenders who charge outrageous rates.