Can a Company Charge 300% Interest in Tennessee?

Full question:

Can a company in Virginia charge 300% on a loan that involves holding the title of a person's car as collateral?

• Category: Debts and Credit
• Date: 04/07/2025
• State: Tennessee

Answer:

It is possible. The answer will depend on all the facts involved, such as who the lender is and whether the lender is licensed as a payday lender under lending laws. The federal Truth in Lending Act requires disclosure of the cost of credit. You must receive, in writing, the finance charge (a dollar amount) and the APR, which is the cost of credit on a yearly basis. Payday lenders are subject to this regulation.

If you believe that a lender has violated the Truth in Lending Act, file a complaint with the Federal Trade Commission (FTC). The FTC cannot solve individual problems but will be able to act if it discovers a pattern of violations.

Usury laws limit the interest rate amount a lender can charge. In Tennessee, please see the information at the following link for information on payday lending:

http://paydayloaninfo.org/stateinfo/TN.asp

If you believe your lender has violated TN lending law, you may contact the attorney general or Consumer Affairs division at:

http://www.tn.gov/attorneygeneral/cpro/filecomplaint.html

http://tn.gov/consumer/complaint.shtml