Take Out a Payday Loan in Kansas
Living in the sunflower state, Kansas, means a quieter way of life. The people of Kansas appreciate its agricultural traditions and friendlier, slower pace. Food, such as barbeque, is a community event in Kansas. Even though there are plenty of wide, open spaces, Kansas also has bustling, modern cities for residents, such as Topeka, Wichita, Kansas City and Lawrence.
One of the draws of living in Kansas is the inexpensive lifestyle. Although it's true you'll pay a little less for groceries, transportation and other goods in this state, some residents still struggle. Earning top dollar in a state that is mostly known for farming isn't feasible for the average Kansas resident. One way some people in Kansas help get through a month where money may be tight is to take out a payday loan.
Here are some details about how payday loans work in Kansas and information for people who are considering taking one.
Payday Loan Rules in Kansas
Kansas residents who are thinking about taking out a payday loan should know all of the rules and regulations of this industry. Kansas began regulating the payday loan industry in 1993 and passed legislation. In 2004, the regulations were updated. Currently, in 2019, lawmakers are considering adding more rules to the industry. Here are the things you need to know:
- Maximum amount for payday loans: $500
- Loan term length: 7-30 days
- Rollovers Permitted: No
- Fees and finance charges: 15% of check
- Finance charge on a 14-day loan of $100: $15
- APR on a 14-day loan of $100: 390%
- Maximum number of loans allowed at one time: Two
Kansas Payday Loan Requirements
If you need a payday loan in Kansas, the most you're legally allowed to borrow is $500. It's possible to have two loans outstanding at the same time, but no more than that. Rollovers aren't permitted in the Kansas payday loan industry.
If you take out a payday loan of $100 on a 14-day plan, your finance charges will be approximately $15. APR for your loan can reach as high as 390%. State lawmakers are considering adding legislation for the future that would cap the interest rate at 36% for payday loans in Kansas. The state requires that the finance charges for payday loans must not exceed $15 of your paycheck.
Extensions are not allowed for your payday loan in Kansas. The terms for loans in Kansas range from seven to 30 days. If you don't pay as agreed, your lender is allowed to charge a collection fee for the loan. Lenders aren't required to give you a reasonable repayment plan and refinancing of a payday loan is not permitted. The good news is that consumers are protected in Kansas from facing criminal penalties if they don't pay back their loan.
What makes Snappy Payday Loans different?
We're working hard to restore the reputation of payday loans, cash advances and other short term lending services. We believe that all kinds of people should have access to the financial products which can help them to deal with unforeseen expenses even if they have less than exemplary credit records. Unfortunately, the reputation of payday loans in Kansas has been marred by less than reputable lenders who prey on the financially vulnerable.
If you've made the informed decision to take out a payday loan you can do so safe in the knowledge that Snappy Payday Loans can help you do so in the safest way possible. Remember we are not a payday lender. Instead we put you in touch with the right payday loans direct lenders in Kansas to suit your needs, helping you to make a well informed and zero-obligation decision that's right for you and your household.
Why Payday Loans?
People who turn to payday loans may be living from paycheck to paycheck. Workers from all different industries in Topeka, Kansas City or Wichita may consider using a payday loan if they can't pay their bills on time one month. It's more common for lower income people, such as blue collar workers, retail employees and restaurant staff to take out payday loans.
Even though the cost of living in Kansas is low, prices for everyday goods and other big-ticket items continue to rise. Additionally, a setback, such as a pricey car repair bill or an unforeseen home expense can be frustrating if you're on a budget. Payday loans can help someone stay afloat.
Payday Loans and Consumer Protection in Kansas
The first time state lawmakers took steps to regulate the industry and help keep consumers protected was in 1991. The state legislation attempted to pass laws to limit interest rates and help consumers not get in over their heads for payday loans, but the bill never got out of the Senate.
In 1993, state lawmakers in Kansas were finally successful at passing the first bill to help regulate the payday loan industry. Kansas was one of the first states in the country to take this step to protect consumers. The new law capped interest rates, limited the amount of money consumers could borrow and set a ceiling for finance charges.
In 2004, the Kansas state legislature went back to the law and amended it with the new, current regulations. It set a loan term minimum for seven days and a maximum for 30 days. Only two loans were allowed to be taken out at a time, according to this new set of regulations. Lenders were also required to keep detailed records from borrowers.
Payday loans are also monitored through a state database. The OSBC Division of Consumer and Mortgage Lending in Kansas is responsible for recording information about the payday loan industry in the state. All lenders are part of the database and must update their information regarding license numbers and the location of their company. As of 2015, there were 11 online lenders in Kansas, 65 payday loan companies in the state and 326 individual locations for payday lending.
In 2006, the federal government passed new laws for military borrowers. The Military Lending Act also impacted the payday loan industry in Kansas. Borrowers who were serving in the military can't be charged more than 36% interest. Additionally, it is illegal to garnish wages for a member of the military if the payday loan isn't being paid back on time. During a deployment, any type of collection or repayment can be put on hold.
What's Next for Payday Loans in Kansas
Since 2004, there have been a few attempts by the state legislature to change the payday loan laws, but most of these attempts have not made it past committee or the Senate. Lawmakers attempted to limit the number of consecutive payday loans to five with the same company in 2007, but that bill never passed. In 2010, a bill failed that would tack on an additional $1 to each payday loan to help the state raise more revenue for programs. In 2015, the state tried to put more regulations on the industry to help senior citizens and cap interest rates for this group at 36%, but that bill didn't make it into law.
The Consumer Financial Protection Bureau enacted new regulations in 2016 for the payday loan industry that should go into effect in 2020. These nationwide regulations will also impact Kansas payday loans. First, the lender will be responsible for making sure the borrower can afford to pay back the loan before signing off on the paperwork. Borrowers may also not take out more than three consecutive loans in a short period of time. The borrower's debit account for payment must also not be used after there are two unsuccessful payment attempts. This helps a struggling borrower avoid pricey bank fees for insufficient funds.
In the future, Kansas lawmakers are proposing to set the interest rate at 36% for all payday loan consumers. This interest rate cap could help lower the cost of getting these loans and make it a more feasible option for many people struggling with paying their bills. It can also help the most desperate borrowers avoid getting into the cycle of overwhelming debt. The key to making payday loans work is to only take out the amount of money you need and to use them sparingly. Payday loans shouldn't be taken out on a consistent basis. It's also important to consider credit counseling if you are regularly having trouble paying your bills each month.
How the Loan Process Works
When you apply for payday loans through our website, the process is completely secure and confidential. Our 128-bit encrypted connection transmits your application to our partners without the risk of interception by third parties.
We pride ourselves on our simple, streamlined application process. Most people are approved if they meet the following requirements:
- Have an active checking account in good standing
- Are a permanent resident or citizen of the United States
- Are age 18 or older
- Have had a job for at least one month
- Can supply a working phone number and email address
The Types of Lenders Available
You can get payday loans and cash advances in Kansas either online or in person. Scores of brick-and-mortar lenders operate in Kansas, and some of these lenders also operate online. You can go in person during the lender's business hours or call the lender and begin the process that way. Alternatively, you can fill out an online request form if the lender has one.
Then there are online-only companies such as Snappy Payday Loans. We offer a variety of helpful features:
- With our quick service, most loans distributed within one business day.
- Loans are deposited right into your bank account.
- Lenders are often willing to work with applicants who have bad credit.
- You only have to fill out a simple online form.
We do not loan you the money, but we use the information you submit to match you with a direct lender (assuming you qualify for a loan). The direct lenders working with us operate by Online Lenders Association best practices. This online option is convenient because you don't have to leave your home and wait in line or wait for a business to open. We process applications on secure servers 24 hours a day, seven days a week.
Get Cash Now
If you want a loan as soon as possible, check out our easy online form. Start the process here, and see if you're matched to a lender. If you don't like the rates or terms proposed, you are under no obligation to accept the offer. It's a win-win situation in which you get to see whether you qualify and what the terms are like.