Kansas Payday Loan

Like most states, Kansas has some guidelines that attempt to regulate companies doing payday loans in the state. While online payday loan companies that operate in Kansas are required to follow the same rules, it’s important to double check the specifics before agreeing to the loan.

In Kansas, all loans have a minimum period of seven days and a maximum of thirty days. There is no minimum amount for a payday loan, but the maximum is $500. The maximum fee allowed is $15 per $100 borrowed and the effective 14-day APR is 390%. Overall, these guidelines fall in the middle of the guidelines in place in other states.


Best Kansas Payday Loan

No
Provider
Review
APR
Visit Site
1
AmeriAdvance
Varied
Go to AmeriAdvance
2
Paydaymax
431.79%-616.85%
Paydaymax
3
Plain Green Loans
59.84% �?378.95%
Go to Plain Green Loans
4
MyCashNow
401.13%-573.05%
MyCashNow
5
Discount Advances
401.13%-573.05%
Discount Advances
6
100 Day Loans
36%�?51.79%
100 Day Loans
7
Cashnet USA
243.25%�?83.04%
Cashnet USA
8
Check City
Varied
Check City
9
Cash Central
Varied
Cash Central
10
CashAdvance
Varied
Go to CashAdvance.com

What You Need to Know About Payday Loans in Kansas

All establishments in Kansas that process payday loans are required to be licensed and bonded. Ten years ago, only thirty payday loan outlets were licensed in the state. Today, it’s more than 350 and there are an estimated 100 more online-only loan companies that have customers in Kansas.

There aren’t any guidelines in place in the state governing what requirements need to be met by the borrower. Those requirements vary depending on the payday loan provider, but generally a borrower needs to have a checking account that has been open and active for at least three months. They need a steady job with a monthly income of at least $1,000 per month. Some companies will run credit checks on applicants although that is not the norm in the industry. In fact, most payday loan companies promote the fact that even individuals with bad credit or other problems can still qualify for a loan.

Kansas does have a law in place that discourages borrowers from taking out loans at multiple places at the same time. While most industry observers would argue it’s not a good idea to take out multiple loans, there is no mechanism in place in Kansas to track individual loans. So there’s no real way to determine whether an individual has any other payday loans outstanding when they apply for a new one. Some payday loan companies do share loan info with each other, because the default rate for borrowers with multiple simultaneous loans is four times higher than the average.

The newest player in short-term loans in Kansas is a Kansas City-based group called Fair Community Credit. The group is a coalition of non-profit organizations, churches, bankers and community agencies that have banded together to provide loans of $300-$500 to individuals in need. They are charging substantially lower interest rates than traditional payday loan companies. The hitch for borrowers is that to get a loan you need to be referred by a person or agency affiliated with the group. The loans are funded with $200,000 provided by local Kansas City area banks.

In the past several years, some towns in Kansas have passed zoning restrictions that limit the areas in which a payday loan establishment can be located. There is the Kansas legislature is considering a bill that would limit the interest that can be charged on payday loans to less than 50 percent.

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