Mississippi
Newspaper: State has a Duty to Protect Citizens from Payday Advance Fees
As The Clarion-Ledger reported in September, check-cashing services offering exorbitant interest rates - or payday loans - have sprung up across the state.
Section
Payday Loans in Mississippi
Payday Loan Laws in Mississippi (2026)
Yes — payday loans are legal in Mississippi, and the state allows two of the most expensive small-loan products in the country. A classic payday loan runs up to $500 with fees that work out to about a 521% APR, and a separate Credit Availability Act installment loan (now up to about $3,250) carries a 25%-per-month charge — over 300% APR. In 2025 the state raised the installment cap and extended the program to 2030.
| Status | Legal — two high-cost products allowed |
|---|---|
| Payday max | $500 (Check Cashers Act) |
| Payday fee | $20 per $100 up to $250; $21.95 per $100 for $251–$500 |
| Payday APR | ≈521% on a 14-day loan |
| Installment loan | Up to ~$3,250 (Credit Availability Act; CPI-indexed) |
| Installment charge | 25% of principal per month — over 300% APR |
| Term | Payday up to 30 days; installment 4–12 months |
| Rollovers | Prohibited — pay in full before a new loan |
| Regulator | Department of Banking and Consumer Finance (DBCF) |
| Law | Check Cashers Act (75-67-501+); Credit Availability Act (75-67-601+, extended to 2030) |
What Mississippi borrowers should know
- Mississippi licenses two high-cost products: a payday loan up to $500 (~521% APR) and a Credit Availability Act installment loan whose 25%-per-month charge tops 300% APR.
- Payday fees are $20 per $100 up to $250 and $21.95 per $100 from $251 to $500 — among the highest in the nation.
- Rollovers are illegal: you can't extend a payday loan by paying only the fee; it must be repaid in full first.
- In 2025, the legislature raised the installment-loan cap (now CPI-indexed) and extended the Credit Availability Act's sunset to July 1, 2030.
Problem with a lender? File a complaint
Payday and installment lenders in Mississippi are licensed by the Department of Banking and Consumer Finance. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Given the cost, weigh a credit-union payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling first. See our guide to payday loans and alternatives.
Your debt rights in Mississippi
A lender can garnish wages in Mississippi only after it sues and wins a court judgment, and federal law then caps how much can be taken. Mississippi does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Mississippi Department of Banking and Consumer Finance (DBCF) before borrowing. Last reviewed 2026.
Sources
Frequently asked
Are payday loans legal in Mississippi?
Yes. Mississippi allows payday loans up to $500 under the Check Cashers Act and high-cost installment loans under the Credit Availability Act, both overseen by the DBCF.
What is the most a Mississippi payday lender can charge?
$20 per $100 for loans up to $250, and $21.95 per $100 for loans from $251 to $500 — about a 521% APR on a two-week loan.
What is the Credit Availability Act?
A separate Mississippi law allowing installment loans (now up to about $3,250) with a 25%-per-month charge — over 300% APR. In 2025 the cap was raised and the program extended to 2030.
Can I roll over a payday loan in Mississippi?
No. It is illegal to renew or extend a payday loan by paying only the fee; the loan must be paid in full before you take another.
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