Borrowing in Mississippi: What State Law Allows

Payday loans under the Check Cashers Act

Mississippi calls payday loans delayed deposit transactions. You write a check, the lender advances cash, and it holds the check until the agreed date. The face of the check, fee included, can't exceed $500, and the total of all payday checks held for you at one time can't exceed $500 either.

On the largest loan, you get $410 in cash and owe $500, a $90 fee. Over 30 days, that's an APR of about 267%. Lenders cannot renew or roll over a loan, cannot pay one off with a new one, and cannot charge late fees. The Department of Banking and Consumer Finance says one returned-check fee of up to $30 is allowed only if your agreement discloses it. You can ask for a payment plan, but the lender doesn't have to agree.

Title pledge loans

The Title Pledge Act lets a licensed lender hold your car title for a 30-day loan of up to $2,500 per title, at a charge of up to 25% of the principal per month, which is about 300% a year. You can extend in 30-day periods, but from the first extension you must pay down at least 10% of the original principal each time.

• You have 30 days after the due date to redeem the title by paying what you owe, with no extra charge.
• After that, the lender can repossess the car without going to court, as long as it doesn't breach the peace.
• You get three business days after repossession to pay and get the car back.
• If the lender sells the car, it must return 85% of any money left over after the debt, charges, repossession costs and a $100 sales fee.

Installment loans with a monthly fee

Credit Availability Act lenders make installment loans with a maximum outstanding balance of $3,320 as of July 1, 2026 (up from $3,250). Loans of $500 or less run four to six months; larger loans run six to twelve months.

Traditional small loan companies are licensed separately and can lend up to $5,330 from July 1, 2026. Before you take any of these, compare them with payday loan alternatives such as a credit union loan, and run the numbers in the loan payment calculator.

Three years to sue, and a 30-day pause on garnishment

Mississippi has one of the shortest collection windows in the country. Most actions, including suits on contracts and on open accounts such as credit cards, must be filed within three years (Miss. Code 15-1-49 and 15-1-29). See how statutes of limitations work before you pay on an old debt, because some actions can affect the clock.

If a creditor wins a judgment and garnishes your wages, your pay is exempt for the first 30 days after the writ is served. After that, the creditor can take the lesser of 25% of your weekly disposable earnings or the amount above 30 times the federal minimum wage. Support orders and taxes follow different rules.

Proposals that didn't pass, and where to complain

A 2024 bill (House Bill 865) would have capped payday, title pledge and pawn charges at 25% APR. It died in committee, so the limits above still apply.

1. 1 Check the license with the Department of Banking and Consumer Finance. Payday, title pledge, credit availability and small loan lenders each need their own license.
2. 2 Get the APR and dollar cost in writing. Payday agreements must show the fee in dollars and as an APR.
3. 3 Complain to the Department at 1-800-844-2499 or the Attorney General's Consumer Protection Division at 1-800-281-4418. Your federal rights with collectors are in debt collectors and your rights.

Common questions