Are Payday Loans Legal in Kansas?
Short-term Payday Loans in Kansas are legal and are mostly regulated through Kansas Statute §16a-2-404.
Kansas Legislative Research Department.pdf
The Payday Lending legislation covers all the parts of the process concerning:
- Payday Loan amounts
- Payday Loan repayment terms
- Payday Loan online direct lenders
- Payday Loan stores near you
- Payday Loan interest rates and other fees
- Payday Loan collecting practices
- Payday Loan default penalties
- The number of outstanding Payday Loans as well as a cooling-off period in-between etc.
The main Payday Loan requirements in Kansas are:
- US residence
- Minimum regular income of $1,000 per month
- Valid checking or savings account with direct deposit
- Phone number and e-mail address
Kansas allows maximum $500 Payday Loan amount. It should be repaid within 7 – 30 days as soon as you get your next paycheck. Earlier payments don’t contemplate any additional fees. You are likely to be charged 15% of a loan taking into account the maximum APR of 390.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.
Kansas Payday Loan Terms and Amounts
Kansas residents who are eligible for a Payday Loan can get $500 cash advance per contract. The repayment term is capped at minimum 30 day(s) and maximum 7 day(s).
However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Kansas.
If $500 is not enough, there are always other options to receive the necessary funds in Kansas: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.
Kansas Payday Loans online laws
Payday loans from both storefront and online lenders are legal in the state of Kansas according to Kansas Statute §16a-2-404. Any lender who violates these laws can be subject to civil penalties.
Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.
You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score.
Kansas Payday Loans interest rates, fees, and other finance charges
The main part of payday loan payment is mostly made up of the interest rate, or APR. The average APR that may be charged for short-term cash advances in Kansas is 390.00%. It means that if you borrow $100 Payday Loan for 14 days the finance charges will be 15% of a loan.
Besides, the total cost of a Payday Loan includes some additional fees. Kansas lending rules allow charging One NSF fee.
The law obligates Kansas Payday Loan lenders to provide you with a written disclosure of all the rates and fees in understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.
Kansas Payday Loans direct lenders regulations
According to Kansas payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contracts. It concerns both Online Payday Loans and Payday Loans Near Me
Kansas Payday lenders should observe the following rules:
- Write a personal check to the borrower for the amount of the loan plus a fee.
- Let the borrower know about additional fees in case they extend or “roll-over” the loan.
- Payday lenders shouldn’t, encourage chronic borrowing and hold annual interest rates as high at 400%.
- Under the Truth in Lending Act, the cost of payday loans must be disclosed among other information, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).
Kansas Payday Loans consumer information
Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Kansas. They include the availability and number of rollovers, extensions, repayment plans, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:
|Rollovers or extensions||None|
|NSF fee||Only one|
Look for more detailed information on the official Kansas state regulator website – https://www.osbckansas.org/.
Legitimate Payday Loans Online with NO credit check in Kansas
Looking for a legal Payday Loan with No credit check in Kansas? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.
If you don’t want to damage your credit history, Kansas law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.
Kansas Payday loans online with no credit check are one of the easiest options for getting quick cash to cope with emergency financial requirements, especially for people with poor credit.
Does Kansas law allow Payday Loans for bad credit borrowers?
The average credit score in Kansas is 680, placing it in the good range. But it doesn’t mean that those who have worse credit can’t apply for a Payday Loan in Kansas.
- First of all, there’re a lot of legit direct lenders in Kansas providing Payday cash advances to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
Legit Payday Loans in Kansas collection practices
If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Kansas direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds in your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Kansas, only one NSF fee is allowed.
Besides there are other default penalties in Kansas such as One NSF fee.
What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Kansas. The laws limit the collection actions lenders can take – When a borrower has failed to repay a Colorado payday loan, the laws dictate that lenders are not allowed to take any legal action against that borrower unless the individual has closed his or her checking account prior to repaying the debt in full. This essentially means that borrowers who maintain their checking accounts and who are unable to repay payday loans will be protected from payday loan lenders’ attempts to sue them or garnish their wages.
The Fair Debt Collection Practices Act (FDCPA) applies only to third-party debt collectors. The CFPB and the Federal Trade Commission (FTC) have oversight of the FDCPA. Collections are not subject to the FDCPA if the debt being collected belongs to the entity collecting the debt. Payday lenders may contact a borrower in an attempt to collect on a payday loan, or to notify the borrower the loan is coming due. However, the lender cannot commit an unconscionable act under the UCCC or the Kansas Consumer Protection Act.
If you think that your payday lender violates the Kansas Payday Loans law, you may file a written complaint with Office of the State Bank Commissioner, 700 SW Jackson, Suite 300 Topeka KS 66603, (785) 296-2266
. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determines whether to pursue civil or criminal charges.
Kansas Payday Loans news – latest changes
The 2015 Legislature introduced SB 100, which would have set a single finance charge not to exceed 36% for closed-end credit consumer loans. SB 100 was referred to the Senate Committee. A hearing was not held on the bill, and the bill died in the Committee. During the 2016 Legislative Session, HB 2695 was introduced and referred to the House Committee on Insurance and Financial Institutions. HB 2695 would have added a new section to the UCCC, to be known as the “Respectful Lending to Kansas Seniors Act.” The bill would have placed a 36% interest cap on payday loans for senior citizen-consumers, as well as allowed modification for a senior citizen’s federal adjusted gross income for the taxable year. A hearing was not held on the bill, and it died in committee.
Special Committee on Financial Institutions and Insurance. The 2017 Legislature introduced HB 2267, which would, among other things, amend provisions in the Code relating to consumer loans and would impose a cap of 36.0 percent annual percentage rate on all consumer loans with open-end credit, including all fees, interest, and charges. The bill would also amend the definition of “consumer loan” and rules relating to how consumer loans can be repaid by borrowers and
how many consumer loans a single borrower can have outstanding from a single lender. The bill and related regulatory review was assigned by the Legislative Coordinating Council to the interim Special Committee. The Special Committee met
in October 2017.
Kansas Payday Loans historical background
|1991||The first attempt to regulate Payday lending in the sate was made with the aim to control high interest rates.|
|1992||The existing legislation concerning Payday Loans was reviewed.|
|1993||The loan amount, terms and finance charges were limited.|
|2004||A 7-day minimum term, 3 outstanding loans at a time (during 30 days) were set.|
|2006||The Military Lending Act effectively capped payday loans offered to the military at 36% APR.|
|2019||It was proposed that Payday Loans should be capped at 36% interest which is still being discussed.|