What a title loan costs — before Mississippi’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Mississippi
- Rate cap
- Up to 25% per month of principal (~300% APR), charged in lieu of interest or other charges (Miss. Code Ann. 75-67-413). Accrues on the transaction date, again on day 31, and every 30 days thereafter.
- Key law
- Mississippi Title Pledge Act, Miss. Code Ann. 75-67-401 et seq.; rate set at 75-67-413.
- Enforcement
- The Mississippi Department of Banking and Consumer Finance (DBCF) licenses and regulates title pledge lenders. Charges collected in excess of the cap are uncollectible and void the transaction.
The statute authorizes a title pledge service charge of 25% of principal per month (Miss. Code Ann. 75-67-413), equivalent to about 300% APR.
What it means for a Mississippi borrower
Single-payment, high-cost car title (title pledge) loans are fully legal in Mississippi at roughly 300% APR. A borrower who cannot repay in 30 days faces recurring 25% monthly charges, though each renewal must cut principal by 10%. This is one of the most permissive title-lending states.
Before you borrow in Mississippi
- Check whether the lender is licensed in Mississippi — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Mississippi attorney general and the CFPB.
- Ask whether the balance is even collectable under Mississippi law before you pay a collector.
Cheaper first — try these before a title loan in Mississippi
Title Loans and tribal lenders in Mississippi
Many online lenders that market title 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
Are title loans legal in Mississippi?
In Mississippi, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Mississippi?
Up to 25% per month of principal (~300% APR), charged in lieu of interest or other charges (Miss. Code Ann. 75-67-413). Accrues on the transaction date, again on day 31, and every 30 days thereafter.
What can I do about a title 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.