Payday Loans Debt Consolidation

Kansas Payday Loan Laws

have also enacted specific provisions to regulate payday lending in the state. These are small, short-term loans, but many unscrupulous lenders often try to take undue advantage of the poor borrowers by trapping them into debt through unreasonably high fee and interest rates. That is the reason why these loan programs are strictly regulated by the state government. Though a couple of states have made this type of lending illegal, it is still legal in Kansas. But, in order to issue these loans, the lenders must first obtain necessary licenses.

The Basic Terms

Kansas payday loan laws prohibit rollover of the loan in case of non-payment. The minimum period for which the loans can be issued is 7 days while the maximum period is 31 days. Besides that, lenders are allowed to charge interest rates over every 2-week period.

Rates And Fees

For every $100 that is lent, a maximum fee of $15 can be charged. Payday lenders cannot charge additional interest, as the fees include interest also. It means a loan of $400 will charge $60 as fees. In other terms, for a 2-week period, the actual interest rate equals to 360% per annum. The lenders however can charge an additional fee for non-sufficient funds charge (if applicable), but they are legally prohibited to collect more than one such charge per loan.

Maximum Number And Amount Of Loans

Kansas payday loan laws cap the maximum loan amount at five hundred dollars, but the laws do not say anything specific regarding the minimum amount. Besides that, borrowers cannot have more than two cash advances at a time.

Where To File Complaints?

If you have certain issues with a payday lender, you can file your complaints by mailing the details to the state bank commissioner, 700 SW Jackson, Suite 300, Topeka, Kansas 66603. You must attach all necessary documents (the copies, not the original) that should give the authorities a clear picture of the issues.

The state of Kansas thus has imposed certain regulations regarding payday lending, but the above restrictions often do not prove to be very helpful for the borrowers. This type of loan is still a very expensive financing option in this state. Despite all the restrictions, the borrowers in this state are often pushed into a perpetual cycle of debt. For poorer people who have a fixed, hand-to-mouth monthly income, these loans turn out to be a debt trap that soon becomes almost impossible to break out. That is the reason why Kansas encourage the people residing in this state to avoid these loans and try better payday alternatives.


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Posted in Payday Loan Laws, Payday Loans Debt Consolidation | 4 Comments »

4 Responses to “Kansas Payday Loan Laws”

  1. Julius Wiltshire says:

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  3. Cristie Lessenberry says:

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  4. how to ice a cake says:

    Burning the quran is not going to solve anything.If it truly is offensive to correct muslims ,We as Christians know this not what our teacher has taught us.Mr Jones does not represent the majority of Christians,but just as burning the quran is offensive to muslims and they want it to be stopped and want assistance.The true Muslims have to see or recognize that it can be just as offensive to build a mosque near the twin towers to True Americans as burning their quran would be to them.They should show real support against it.

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