Tennessee

Payday lenders charge exorbitant fees to borrowers without assessing their ability to repay, and the annual interest rates on these loans are in the triple digits.

A few high-cost lenders are evading state consumer protections through rent-a-bank schemes. Through these sham arrangements, these companies are exploding right through the interest rate limits that most states have put in place for good reason, to protect people from high-cost debt traps that drain them of their hard-earned income. In the following states, payday lenders are using banks, which...

Payday and car-title loans typically carry annual percentage rates (APR) of at least 300%. These high-cost loans are marketed as quick solutions to a financial emergency. Research demonstrates, however, that they frequently lead to debt that is nearly impossible to escape. In addition, these loans are related to a cascade of other financial consequences, such as increased overdraft fees, delinquency...

This color-coded map of payday stores by household reveals a disturbing pattern. Southern states are among the most targeted for these high-cost, low-dollar loans.

The following are some of the highlights of the report conducted by the Tennessee Department of Financial Institutions on the $73 million title lending industry in Tennessee: High Interest Rates Remain. Annual rates for car title loans are still 264%. Still a Lemon for Borrowers. According to the report, half of the new loans made in 2006 were for $500...

A report released by the Tennessee Department of Financial Institutions on February 1, 2006 reveals that Tennessee's title lending industry has taken thousands of borrowers' cars after charging borrowers sky-high rates. Findings from the report include the following: High Rates. Some Tennessee lenders charged as much as 30% per month for title loans, substantially more than the 22% per month...