What a payday loan costs — before Mississippi’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Mississippi
- Rate cap
- No effective APR cap; fee-based limits of $20 per $100 (loans under $250) and $21.95 per $100 ($250–$500), producing APRs around 572%.
- Key law
- Mississippi Check Cashers Act (payday made permanent in 2012) and the Credit Availability Act (2016).
- Enforcement
- No major state action against tribal lenders verified.
A $400 two-week Mississippi payday loan can cost about $87.80 in fees — roughly 572% APR — and payday lending was made permanent by the 2012 Check Cashers Act.
What it means for a Mississippi borrower
High-cost payday and installment loans are legal, and tribal lenders operate under sovereignty claims largely beyond the state’s payday caps — so such loans are broadly enforceable.
Before you borrow in Mississippi
- File a complaint with the Mississippi Department of Banking and Consumer Finance.
- Verify licensing — though there is no usury cap to void the rate itself.
Cheaper first — try these before a payday loan in Mississippi
Payday Loans and tribal lenders in Mississippi
Many online lenders that market payday loans to Mississippi residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Mississippi residents and how state law applies to them, see the Mississippi tribal-lending page.
Tribal loans in Mississippi →Frequently asked questions
Does an online or tribal lender have to follow Mississippi's payday loan rules?
Mississippi applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to Mississippi residents and how the state treats them, see the Mississippi tribal-loan page.
What can I do about a payday loan I already have in Mississippi?
Mississippi allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Mississippi attorney general or the CFPB if the lender breaks the rules.