Payday Loans are Legal in Kansas

Beware of predatory lending

Payday Lenders in Kansas

Kansas residents who find themselves in a bind for cash often turn to payday loans, with more than 300 payday loan storefronts available statewide. These are a short-term loan option available that can help cover emergency expenses or just bridge the gap between paychecks.

Kansas borrowers take out over 685,000 payday loans each year with an average loan amount of $304. This indicates the popularity of payday loans in the state, especially among those who are struggling financially and do not have access to traditional lending options. The money is usually due back by the next paycheck, averaging 18 days, and come with high-interest rates and fees for their convenience. There are regulations in place meant to protect borrowers, but payday loans are still much more expensive than other loan options. Without proper financial planning and budgeting, payday loans can become a burden for individuals struggling to make timely repayments.

Borrowers should be cautious of lenders who are quick to renew their loans after paying the initial interest. This can lead to a cycle of debt when the interest is added back on to the initial loan amount, essentially leaving the borrower in the same place they where the week before. It is also worth noting that Kansas is one of the few states that allows lenders to offer borrowers multiple payday loans simultaneously, which can lead to even more financial difficulties for borrowers. While access to fast cash seems appealing, for many who live paycheck to paycheck, payday loans can be a harrowing experience and should be used cautiously by those who know they will be able to pay back the full amount on their next paycheck.

Payday Loan Laws

Kansas regulations set the guidelines for payday lending practices in the state. Lenders must adhere to these statues if they want to continue operating in Kansas. A payday lending contract must be provided in both English and Spanish and written in a clear and concise manner. The state also requires that the contract contain a warning stating that lenders and their affiliates cannot have more than two loans outstanding with a borrower at one time. On top of that, a lender cannot divide the amount owed into multiple loans to increase fees, and cannot make more than three loans to a single borrower within a 30-day period. These laws aim to protect consumers and ensure fair lending practices in Kansas.

The specific statutes governing payday loans in Kansas are listed below:

Loan Terms and Conditions

Maximum loan amount: $500

Maximum Interest Rate: 391%

Minimum loan term: 7 days

Maximum loan term: 30 days

Number of rollovers allowed: No Limit

Finance Charge: 15%

Legal action: 5 Years

Certified Payday Lenders in Kansas

Company Name	Company score	License Status
CURO Intermediate Holdings	8	Valid
ENOVA International Inc	7.6	Valid
Advance America, Cash Advance Centers, Inc.	7.5	Valid
Populus Financial Group, Inc. (F/K/A Ace Cash Express)	7	Valid

History of Kansas Payday Loans

Regulation of payday loans started in 1991 when the state legislature recognized the need for regulations that oversaw the industry. At that time, payday lenders offered check cashing services with exorbitant interest rates, violating the Uniform Consumer Credit Code. Despite several attempts to address the issue, it took a long time for any changes to be made. The first bill never even made it out of the Senate. Finally, in 1993, HB 2197 was passed, putting in place new consumer protections and setting limits on loan amounts, terms, and finance charges. In 2004, another set of regulations implemented a 7-day minimum term and limited borrowers to where they could only have three outstanding loans during a 30-day period. Today, Kansas lawmakers are considering a bill that would limit the APR to 36%. The proposed bill, HB 2189, would replace the current concept of payday loans with the new “small loans” and make the maximum amount that can be taken out $2,500 with a minimum term of three months and a maximum term of 25 months.

State Resources

How to file a complaint

When a Kansas borrower has an issue with their payday loan lender, they can file a complaint with the Office of the State Bank Commissioner (OSBC). To initiate a case, complete a consumer assistance request and submit supporting documentation. The OSBC will review your request and if the lender falls within their regulatory authority, they will open a case and begin an investigation. Note that the OSBC cannot provide legal advice or act as your attorney, and their jurisdiction is limited to the statutes within their authority. The OSBC states that it may take some time to investigate, but they will inform you of their findings once they have finished the review.

Kansas Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

There are ways to overcome payday loan debt. You should first contact your lender to try and negotiate a repayment schedule or settlement. Many lenders will work with borrowers having trouble making payments. However, this could lead to an increase in finance charges. Credit counseling agencies can assist you in creating a budget, and negotiating with lenders on your behalf. You can also consolidate payday loans with a debt consolidation loan or personal loan through a credit union or bank. You can lower your interest rate and make payments easier by doing this. As a final resort, you may want to consider bankruptcy. It is best to consult a bankruptcy lawyer before taking this step, as it could have long-term effects on your credit.

Support Resources

Types of Quick Loans in Kansas

Lines of Credit Lines of credit are a flexible borrowing option that allows borrowers to access funds as needed up to a certain credit limit. Unlike traditional loans, borrowers only pay interest on the amount they use, making it a cost-effective option for those who don't need to borrow a large sum at once. Lines of credit can be secured or unsecured and can be used for various purposes such as home renovations, debt consolidation, or unexpected expenses.

Installment Loans Installment loans are loans that are paid back in installments, over a specified period of time. These loans are secured or unsecured, and they're often used to make large purchases or consolidate debt. Installment loans are more affordable than payday loans because they have lower rates of interest and longer repayment periods. It is vital to review all terms and fees carefully before taking out a loan to ensure that it fits into your budget.

Title Loans Title loans are a popular option in Kansas for those who need quick cash. These loans are secured by the borrower's vehicle, which acts as collateral. The lender holds the title until the loan is repaid. Title loans typically have high-interest rates and short repayment terms, making them a risky option for borrowers. However, they can provide a quick solution for those who have bad credit or are unable to obtain a traditional loan.

Alternatives to Payday Loans in Kansas

Personal Loans

In Kansas, personal loans are a versatile borrowing option that can be used for a variety of purposes, such as home improvements, debt consolidation, or unexpected expenses. These loans are often unsecured and can have fixed or variable interest rates and repayment terms. Personal loans may be available through banks, credit unions, or online lenders. It is important to compare offers from different lenders and to understand the terms and fees before applying for a personal loan.

Land Loans

Land loans are a type of loan used to finance the purchase of land in Kansas for various purposes such as building a home, farming, or recreational activities. These loans can be secured or unsecured and may have fixed or variable interest rates and repayment terms. Land loans may be available through banks, credit unions, or online lenders.

Construction Loans

Construction loans are a type of loan that is used to finance the construction of a new home or renovation of an existing property in Kansas. These loans can be secured or unsecured and may include options such as a construction-to-permanent loan or a bridge loan. Construction loans typically have higher interest rates and fees than traditional mortgages due to the risk involved in financing a construction project. It's important to carefully review the terms and fees of any construction loan and to work with a reputable lender.

Bad Credit Loans in Kansas

Bad credit loans in Kansas are designed for borrowers with low credit scores or limited credit history. These loans may have higher interest rates and fees than traditional loans, but they can provide a solution for those who are unable to obtain credit through other means. Bad credit loans can be secured or unsecured. It is important to carefully review the terms and fees of any bad credit loan and to make sure you can repay it on time to avoid further damage to your credit.

Kansas Small Business Loans

Kansas offers various types of small business loans with specific requirements and terms; each option offers benefits unique to itself:

SBA loans: Provides funding for a wide range of business purposes, such as purchasing equipment or inventory, refinancing existing debt, or expanding your business. The loan amounts can go up to $5 million, with repayment terms of up to 25 years.
Equipment financing: If you need to purchase or upgrade equipment for your business, equipment financing can be a great option. This type of loan provides funds specifically for purchasing equipment, with repayment terms ranging from a few months to several years.
Business line of credit: A line of credit can provide your business with flexible access to funds as you need them. With a business line of credit, you can draw funds as needed up to a certain credit limit, and only pay interest on the amount you borrow.
Invoice financing: Small business owners can borrow against the value of their outstanding invoices, with repayment terms ranging from a few weeks to several months.
Merchant cash advance: A merchant cash advance provides funding based on the business's future credit card sales. With this type of loan, you receive a lump sum of cash upfront, and then repay the loan with a portion of your daily credit card sales.

VA loans in Kansas

Kansas veterans and active-duty military personnel can take advantage of VA loans to finance their homes. These loans are guaranteed by the Department of Veterans Affairs and offered by private lenders. One of the main advantages of VA loans is that they do not require a down payment or private mortgage insurance, making them a great option for military families looking to buy a home. The maximum amount that can be borrowed through a VA loan in Kansas is $726,200 as of January 1, 2023. VA loans also offer competitive interest rates and flexible credit requirements, making them accessible to many Kansas veterans and service members. Additionally, the VA offers a variety of other benefits, such as financial counseling and assistance with employment and education, to help veterans and their families thrive.

Kansas Student Loans

Kansas students have various options available to them to finance their college education, including:

Federal Student Loans: These loans are provided by the U.S. Department of Education and are available to eligible students attending an accredited college or university. Federal student loans offer flexible repayment plans, low interest rates, and may be eligible for loan forgiveness programs.
Kansas Military Service Scholarship: This scholarship is available to Kansas residents who have served in the military since September 11, 2001, and are attending an eligible Kansas college or university. The scholarship amount varies based on financial need and available funding.
State student loans: Some states, including Kansas, offer student loan programs to eligible students. The Kansas Comprehensive Grant is one such program, which provides financial assistance to Kansas residents attending eligible colleges and universities in the state.
Institutional student loan: Some colleges and universities offer institutional loans to their students. These loans may have more favorable terms than private student loans, but may also be limited to specific schools. Private Student Loans: Offered by banks, credit unions, and other private lenders, and often have higher interest rates than federal or state funding. Students can use these to cover education expenses that federal loans don't cover.

Kansas Income Information

The economy of Kansas is primarily driven by agriculture, manufacturing, and energy sectors, with the state being one of the top producers of wheat, beef, and oil in the country. Kansas had an overall median household income of $64,521 in 2021 which was slightly lower than the national median of $69,021. Income varies drastically depending on which county in Kansas they live in – Johnson County had an overall median household income of $91,650 while Jewell County had the lowest at $38,188. The poverty percentage in Kansas for 2021 was 11.7%.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 24, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Kansas . Accessed on April 24, 2023.

Kansas Payday Lender Complaints

Below are trends associated with the top payday lenders in Kansas, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
CURO Intermediate Holdings	12
ENOVA International Inc	10
Advance America, Cash Advance Centers, Inc.	4
Populus Financial Group, Inc. (F/K/A Ace Cash Express)	3
Total Complaints	59

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 24, 2023.

Most Common Issues

Complaint type	Count
Struggling to pay loan	16
Unexpected fees or interest	12
Received a loan never applied for	11
Incorrect information on report	5
Can’t stop withdrawals from bank account	4

What are the main reasons residents of Kansas apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Wichita
Overland Park
Kansas City
Olathe
Topeka
Lawrence
Shawnee
Lenexa
Manhattan
Salina

Hutchinson
Leavenworth
Leawood
Garden City
Dodge City
Derby
Emporia
Gardner
Junction City
Prairie Village

Hays
Pittsburg
Liberal
Newton
Andover
Great Bend
McPherson
El Dorado
Ottawa
Arkansas City

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are generally not reported to the three major credit reporting agencies, and lenders generally do not check your credit report as part of the application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Kansas, you will typically need a checking account, income, have no outstanding loans, proof of employment and meet the minimum age requirement.

Can I cancel my payday loan?

Yes, you can cancel your payday loan before the close of business on the second business day after receiving the loan by returning the full amount to the lender.

Can a payday loan lender garnish my wages?

In the state of Kansas, a creditor can secure a judgment against a debtor for unpaid debts, and if the debtor fails to pay the debt in full within 14 days of the judgment, the creditor may be legally allowed to garnish their wages.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Kansas as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

When will I receive my funds if I am approved for a payday loan?

You will receive your funds on the same day or the next business day, depending on the lender’s policies and the timing of your application.

What happens if I can’t repay my payday loan on time?

If you are unable to repay your payday loan on time in Kansas, you may be charged additional fees and interest, face legal action, and be unable to take out another loan until the previous one is paid in full.

When could I apply for another payday loan?

Borrowers cannot have more than three loans from a lender within 30 days.