Kansas Payday Loan Laws
These days payday loans have started to become quite controversial. There are a lot of people who want to outlaw them altogether, and a number of states have done just that. However this ignores the fact that there are people who need to have access to these loans. The Kansas payday loan laws have taken a middle ground, ensuring that the loans are available while at the same time providing protection to the borrowers.
The first thing that we need to understand is just what is a payday loan. Most people are familiar with them if for no other reason than that they are advertised incessantly. A payday loan is simply a loan until your next payday. That means that they usually last for a period of no more than a couple of weeks. They tend to be a very expensive way to borrow money often the effective interest rates is well above four hundred percent, in some cases it is several thousand percent. This is why a lot of people view them as predatory. It is also why a lot of states have introduced laws to regulate them.
The laws in most states when it comes to payday loans have tended to be either completely ineffective or they have resulted in the complete ban of payday loans. There are a lot of people who would be perfectly happy to see payday loans get banned. However there are also a lot of people who depend on payday loans. Most of the people who need them are the ones who have no other place to borrow money when they have a financial emergency. Without payday loans being available they would find themselves in a really difficult position. The Kansas payday loan laws are rare in that they allow the payday loan companies to operate in the state keeping this valuable source of cash available while at the same time providing consumers with some level of protection. Here we present the basics of the laws but you should check out Payday Loan Facts Kansas to make sure that you thoroughly understand the rules before you take out a payday loan.
The Kansas payday loan laws allow loans that have minimum period of seven days and a maximum period of thirty days. They also state the maximum that can be borrowed is five hundred dollars. The interest on the loan can be charged over a period of fourteen days. The maximum amount of fees that can be charged on the loan, including the interest is fifteen dollars for every hundred that you borrow. Since you can only borrow five hundred dollars the maximum the fees can come to is seventy five dollars. The result is an effective interest rate of 390%. While this is still quite high it is substantially lower than you will find in states with no payday loan laws.