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EspañolPayday Loans and Cash Advance in Memphis, TN
Legal under the Deferred Presentment Services Act in Tennessee. What a shortfall looks like on Memphis rent and pay, the local rules, who to call for help, and how to request a cash advance online.
A lot of Memphis runs on hourly pay. FedEx works its global hub out of Memphis International Airport, and the night sort, the distribution centers in southeast Memphis and across the state line in DeSoto County, and the hospitals of the Medical District (St. Jude, Methodist Le Bonheur, Regional One) keep tens of thousands of people on shifts that do not always add up to a steady 40 hours. Household income here sits well below the Tennessee median, and more than half of Memphis homes are rented, many of them older houses and duplexes in Whitehaven, Orange Mound, Frayser and South Memphis. Summer is the pressure point. An MLGW bill for a house cooled by window units in August can rival a car payment, and a thunderstorm that knocks the power out for three days can cost a refrigerator full of food. Winter freezes bring their own bills, from burst pipes to missed shifts. MATA buses do not reach every warehouse on the edge of the county, so a dead transmission can mean a lost job, not just a repair. That gap is what the payday, title and flex loan stores along Elvis Presley Boulevard and Jackson Avenue are there to fill, at up to 15% of the check.
What a $500 Shortfall Looks Like in Memphis
Memphis's median household income of $51,736 works out to about $4,311 a month before taxes, so a $500 shortfall is roughly 11.6% of a typical month. Against the median gross rent of $1,181 it is about 42.3% of one rent payment. For the many Memphis households earning below the median, the same $500 can equal a week or more of take-home pay, which is why one MLGW bill or car repair can push rent past the due date.
Tennessee Rules That Apply in Memphis
| Rule | TN |
|---|---|
| Maximum amount | $500 aggregate face value of outstanding checks per customer with any one licensee and its affiliates (Tenn. Code 45-17-112) |
| Maximum fee per $100 | 15% of the face amount of the check, which is about $17.65 per $100 of cash advanced (Tenn. Code 45-17-112) |
| Maximum term | 31 calendar days (Tenn. Code 45-17-112) |
| Rollovers | Prohibited; a licensee may not renew or consolidate a transaction with the proceeds of another deferred presentment transaction it makes (Tenn. Code 45-17-112) |
| $300 for 14 days | $52.94 fee, 460% APR |
The full law, the regulator's phone number and the statute citations are on the Tennessee cash advance page.
Local Ordinance in Memphis
Memphis does not set loan terms, which come from Tennessee law, but its zoning code controls where payday, title and flex loan stores can open. Paragraph 2.6.3M of the Memphis and Shelby County Unified Development Code makes it a violation to operate a payday loan, title loan or flexible loan plan establishment within 1,000 feet of another one, or within 1,320 feet of a residential district or historic overlay district, measured in a straight line between property lines. The code also treats these stores as their own use category, so they cannot open in every commercial zone. The spacing rules began with a joint city and county ordinance in 2009 and carried into the Unified Development Code; flex loan stores were added in October 2015. The $500 cap, the 15% fee and the rollover ban are still state rules under Tenn. Code 45-17-112.
Free Help in Memphis Before You Borrow
- LINC 2-1-1 (Memphis Public Libraries and United Way of the Mid-South): Community information and referral line for utility, food, housing and legal help in Memphis and Shelby County. Call 211 or visit memphislibrary.org/linc-2-1-1.
- Shelby County Community Services Agency: Runs the Low Income Home Energy Assistance Program (LIHEAP) for Memphis and Shelby County; apply online or call the call center for help with the application. Call 901-222-4200 or visit shelbycountycsa.org/utility-assistance.
- Memphis Area Legal Services: Free civil legal representation for low-income families in Memphis; toll-free (866) 361-9001. Call 901-523-8822 or visit malsi.org/contact-us.
- Tennessee Department of Financial Institutions: State regulator that licenses deferred presentment (payday) lenders; license questions and complaints about a payday or flex loan. Call 615-741-2236 or visit tn.gov/tdfi/mortgage-consumer-lending/deferred-presentment.html.
Memphis on the Map
Frequently Asked Questions
Does Memphis have its own payday loan rules?
Only on location. Paragraph 2.6.3M of the Memphis and Shelby County Unified Development Code bars a payday, title or flex loan store within 1,000 feet of another one or within 1,320 feet of a residential or historic overlay district. What the loan costs, how much you can borrow and whether it can be renewed are set by Tennessee's Deferred Presentment Services Act and enforced by the Department of Financial Institutions.
How much can I borrow on a payday loan in Memphis?
Tennessee caps the combined face value of the checks one lender and its affiliates hold at $500, with no more than two checks at a time. The fee can be up to 15% of the check, so a $500 check puts about $425 in your hand. There is no statewide database, so the limit applies per lender, and borrowing from several stores at once gets expensive fast.
Where can I get help with an MLGW bill in Memphis?
Shelby County Community Services Agency runs the federal energy assistance program (LIHEAP) for Memphis and takes applications online; its call center is 901-222-4200. Dialing 211 reaches LINC 2-1-1 at Memphis Public Libraries, which keeps a database of rent, utility and food help across the county. Either route costs less than a payday fee of 15% of the check.
Can a Memphis payday lender threaten me with jail over a bounced check?
No. Under Tenn. Code 45-17-112 you cannot be criminally prosecuted for a check written under the Deferred Presentment Services Act, and the lender cannot add returned check or attorney fees on that check. If a lender or collector threatens arrest, report it to the Department of Financial Institutions at 615-741-2236, and call Memphis Area Legal Services at 901-523-8822 if you are sued.
