Kentucky

In Kentucky, it’s much more difficult to set up a chain of payday loan stores. Kentucky law requires that each payday location obtain a license. In other states, as long as one of the institutions has a license, the other locations can operate under the same license.

As with other states, Kentucky law requires that any fee being charged by the payday loan lender be disclosed in writing before the transaction takes place. Also, the fee in the contract must be referred to as a service fee and not interest. Kentucky also enforces advertising laws. In Kentucky, a payday loan store cannot advertise check-cashing services without requiring identification.

In Kentucky, a consumer can still borrow a payday loan even if they have an outstanding loan balance. So long as the face value of both loans doesn’t exceed $500. The maximum amount that any payday lender can lend in the state of Kentucky is $500. The maximum term limit applied on payday loans in Kentucky is 60 days.

Kentucky law protects consumers from getting sued for defaulted payday loans. In fact, each payday loan store in Kentucky is required to prominently display a sign that says “No person who enters into a post-dated check or deferred deposit check transaction will be prosecuted or convicted”.