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Laws regulating payday lending operations in Kansas

Payday loans are often determined as high-interest cash advance credit given for a short period of time. In the State of Kansas these loans are called cash advances, payday cash advances and payday loans. The State legislative acts monitor the activities of the businesses providing payday lending services.

You can find information about payday lending in Section 16a-2-404 of the Kansas Statute. Under Section 16a-2-404(1) a payday loan is a consumer credit given for a short term which amount doesn’t exceed $500 and which should be paid back on the due date.

There are certain regulations and restrictions of the payday lending industry in the State. A period for which a payday loan can be provided to a borrower ranges from 7 to 31 days. A $100 loan is not allowed to be charged with a rate exceeding 15%.

Only one payday loan can be given to a customer at a time. A lending company is required to keep records of all payday loans bargains. Furthermore, Section 16a-2-404(4) states that payday lending agreement should be written in languages which both parties speak. Another requirement is the print type. A contract is to be written in a 10 bold typeface at least.

Section 16a-2-404(9) of the Kansas Statute provides that an extension period can be given to a borrower. It means that he shouldn’t be charged with extra fees, if he manages to fully pay off the loan till the end of the day following the day of borrowing a loan. In such situation any charges and fees are prohibited to be imposed. In case a borrower decides not to take a loan, he should inform his lender about it in order to return all financial fees. Just one insufficient funds fee can be applied to a payday loan.

Payday loans are considered to be one of the most expensive types of credit. That is why it is recommended not to hurry up and make instant decisions in favor of payday loans when you have a shortage of cash. Although payday loans can seem an excellent alternative in case of emergency and impossibility to wait for a paycheck, you should carefully think over your decision more than once.