Kansas

House Bill No. 2812 – Gives legislatures the right to regulate payday lending practices in Kansas. The bill states that no lending institution in Kansas is allowed to offer payday loans in excess of $860. The fees for payday loans in Kansas are based off loan amounts. They are as follows:

LOAN AMOUNTS
• $50 or less – A charge of $4 may be added.
• $50 to $100 – 8% of the loan plus a $5 administration fee can be added.
• $100 to $250 – 5% of the loan plus a $5 administration fee can be added.
• $250 or more – 4% of the loan with a minimal of $12.50 plus a $5 administration fee.

Term limits for payday loans in Kansas cannot exceed 30 days.

Kansas law prohibits loan splitting. Loan splitting is the act of breaking one loan into two separate loans, then charging fees for both. This is a common method payday lenders use to charge more fees. Kansas law states that all loan agreements must contain the following message in at least 10 point bold face type:

“Notice to Borrower: Kansas law prohibits this lender and their related interest from having more than two loans outstanding to you at any one time. A Lender cannot divide the amount you want to borrow into multiple loans in order to increase the fees you pay.”

Once a payday loan term has expired, a payday loan lender cannot collect more than 3% interest a month on an outstanding loan balance. In Kansas, if a payday loan lender provides a loan, they have the right to charge a return fee on any checks that are deemed insufficient.