Cash advance lending is specifically authorized under Mississippi law. However, payday loan businesses must comply with a number of requirements. They are prohibited from operating near a small loan company, a title pledge office or a pawnshop; they must have a permanent u.s. postal address; they must be in compliance with local zoning ordinances; they must have at minimum 100 square feet of space; the term 'interest' in their loan agreements must be referred to as a 'service fee'; and the loan agreement should be signed on the date of the transaction. Mississippi law permits cash advance stores to offer their clients coupons for a future transaction, provided that the coupons financially benefit their clients. Payday advance lenders are prohibited from bringing criminal action against customers whose checks were returned because of insufficient funds or against clients with delinquent payments.
A borrower can request up to $400 in payday loan funds.
The loan term is 30 days.
Borrowers are not permitted any rollovers or extensions.
The maximum finance fee and rate that a cash advance business can charge is 18% of the check's amount. The finance charge for a two-week loan in the amount of $100 is $22.
The APR for a two-week loan valued at $100 is 572%.