Mississippi Payday Loan Laws and Protections

How Payday Loans Work in Mississippi

Sections 75-67-501 through 75-67-539 of the Mississippi Code address payday loans that use checks held for later deposit. Typically, businesses must have a check-cashing license from DBCF to provide these loans.

A customer receives an amount of cash and in return issues a personal check to the licensee. The personal check includes the advanced cash plus an additional fee. With consent, an electronic withdrawal can also be implemented. In Mississippi, there are limits placed on the cash advance and on the face value of the check. So, it is important to not confuse the cash advance and check value amounts.

Check Amount, Fee, and Term Rules

If a check has a face amount of $250 or less, a deposit can be deferred for 30 days, and the fee cannot be more than $20 for every $100. For checks over $250 and up to $500, the consumer can choose a 28 to 30 day time period for a fee of no more than $21.95 for every $100.

An example of the maximum fee would be a $40 fee on a $200 cash advance making the check $240. The DBCF also shows an example of a $410 cash advance with a $90 fee making the check a total of $500. A provider has the discretion of charging the maximum fee or charging less.

The recorded contracts should express the fees in US dollars and an annualized percentage rate. Prior to signing, you should verify the cash received, dollar fees, check amount, date of presentment, and any electronic debit authorizations. A manageable dollar fee may lead to a high annualized rate for short time periods.

Total Outstanding Limit and Disclosures

The face amount of delayed-deposit checks cannot be more than $500, which includes any fees, and the law caps the amount per customer to $500. The DBCF pamphlet states that while a customer can carry out several transactions with a lender, the total amount for all transactions, including fees, cannot be more than $500.

Every transaction requires a signed written agreement. The licensee is also required to give the DBCF consumer education pamphlet before the transaction. This pamphlet explains the transaction along with the rights and responsibilities of the consumer. Retain both documents and any proof of payment.

Renewals and Rollovers Are Prohibited

Payment of a new fee does not permit a provider to maintain the same payday loan. The extension or renewal of a transaction is not permitted. Neither the provider nor its authorized affiliates are permitted to take a customer's replacement check to pay off the prior check.

The DBCF pamphlet states that the entire transaction must be paid off before a new payday transaction can be entered. If a provider offers a fee-only extension or a same-lender replacement transaction, do not sign it and please report it to the regulator.

Returned Checks, Collection, and Payment Plans

Just because a customer’s check is bounced or they default, it does not give a licensee the right to add a late fee or a collection fee. According to the DBCF pamphlet, only one returned check processing fee of $30 may be charged, but only if it is stated in the agreement. A licensee may take civil action and is entitled to collect the amounts awarded by the court after a judgment is obtained.

Using threats or criminal prosecution by a licensee for the collection of a payday loan is prohibited. For civil collection, a borrower should be aware of the consequences of a payment that cannot be made and should keep a record of all communications.

A consumer may request a payment plan, but the Mississippi statute does not obligate the licensee to accept the request. Make the request prior to the due date and get the specifics of the plan in writing, including payment due dates and total payment amount, and the plan for the original check or debit authorization.

Compare Other Ways to Address the Expense

If you are thinking about borrowing, a bill-payment arrangement, local services, credit union small dollar loans, or help with credit from a nonprofit may be better options. The site compares the structure of loans and credit. It may also help you with costs, timing, and what risks you may face.

Before Borrowing in Mississippi

Before you give personal financial information, check if the check casher is licensed. Read the privacy notice and payment authorization. Make sure you leave some of your own money for necessary expenses after the full value of the check is repaid. If you are asked to make an upfront loan payment with a gift card, a wire transfer, or cryptocurrency, consider it a scam.

Mississippi Payday Loan Laws & Regulations

DBCF's Nonbank Division processes applications for check-cashing licenses and regulates these entities. The table describes state regulations pertaining to payday transactions, in which the customer’s check is deposited at a later time. Other types of short-term loans may be subject to other regulations.

DBCF has a payday-loan consumer pamphlet and state law for check-cashing businesses. They help you evaluate offers. Consumer Finance also includes information on complaints, searches, and licenses.

The laws and guidance may change. The links to the regulators and laws were checked September 7 2026.