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Posted: Fri Mar 02, 2007 2:48 pm

The law says:
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
Finance Charge for 14-day $100 loan: $17.65 APR for 14-day $100 loan: 459%

Here's how to calculate it per the Tennessee Department of Financial Institutions.

For a $300 loan you:

1. Multiply $300 by 15%
300 x .15 = 45

2. Compare to $30. Chose whichever number is the lesser number and add it to the principle amount of the loan.
45 > 30, so $300 + $30 = $330
The $30 is considered the fee for the loan.

3. Take that number and multiply by 15%.
$330 x .15 = 49.50
This is your legal interest.

4. $330 + $49.50 = $379.50 = This is the legal amount a pdl in TN could charge you.

This was kinda confusing so I thought I'd post it for all to see.

Posted: Fri Mar 02, 2007 3:07 pm

Thanks goudah! APR is very confusing to work out. That info will help many I'm sure.

whoknows · Posted: Fri Mar 02, 2007 3:30 pm

it should say in the documents that you sign for the loan how much the interest they charge for the loan on the paperwork.

Posted: Fri Mar 02, 2007 3:48 pm

It does, but that doesn't mean that they are following the laws that they should.

Posted: Fri Mar 02, 2007 6:14 pm

my state is the same as tn so my loan was $200, so tell me if I did my math right

$200 x .15 = 30
$200 + 30 = $230
$230 x .15 = $34.50
$230 + $34.50 = 264.50

I have paid
71.43
71.43
70.00
------
212.86

So I owe them $51.64?

Posted: Sun Mar 04, 2007 5:51 pm

That would be correct as long as your state laws were the same as TN . . . . What state are you in?

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Calculating PDL interest in TN

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