What Is the Payback Chart of Payday Loans in Kansas?
Payday loans provide consumers with cash almost instantly. The consumer must pay the loan and interest back on his next payday. Payday lenders often charge extremely high interest rates; thus many states heavily regulate them or outlaw them altogether. In Kansas, payday loans are legal but lenders may not extend payment terms beyond 30 days or split loan payments and charge higher interest on each payment.
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Fees Chart
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Kansas law limits the amount of interest or fees payday lenders can charge on loans. The fee amount is based on the size of the loan. As of May 2011, Kansas payday lenders may not charge more than $4 in fees on loans less than $50. If the loan is between $50 and $100, the lender may charge a fee of up to 8 percent of the loan plus a $5 administration fee. For loans of between $100 and $250, lenders may charge fees of up to 5 percent of the loan plus the $5 administration fee. If the loan is for more than $250, lenders may charge fees of up to 4 percent of the loan plus the administrative fee of $5.
Loan Terms
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Payday lenders in Kansas may not allow borrowers to take out a loan for more than 30 days at a time. If a borrower does not pay back the entire loan, the lender may not charge more than 3 percent interest total on the unpaid amount. However, the lender may charge any reasonable return fee if the borrower's payment check is returned for insufficient funds.
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No Loan Splits
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Payday lenders in Kansas may not split loans and charge you extra fees for each portion of the loan. If you want to borrow a certain amount, you must borrow the entire amount at once and pay it back at once -- you cannot agree to pay part of it on one date and another part on another date. You also cannot take out two separate loans to be paid back on the same date instead of one loan for the entire amount.
Outstanding Loans
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No payday lender may allow a borrower to take out more than two loans at a time, regardless of the due date of each loan. If a borrower has two loans outstanding, she must pay back at least one of them prior to taking out any new loans. Payday lenders must print this regulation as well as the prohibition on loan splits on all loan paperwork prior to providing payday loans to consumers.
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