Must know information before applying for payday loans with direct lenders in Kansas

Restrictions on lender and borrower

Lender would ask the borrower for information such as paydays, gross monthly income and social security number. Lender would verify this information and inform the borrower if the cash advance payday loan can be offered, the amount of loan that can be offered and the appropriate due date. The maximum amount of loan that can be offered to a borrower is $500. A borrower cannot have more than 2 loans running at the same time and the sum of 2 loans cannot exceed $500. This information can be verified through a database. A loan fee of up to 15% of the loan amount can be charged by the lender. Tenure of the loan can range from 7 days to 30 days. To get the approved loan amount, a borrower has to write a post dated check to the lender that is equal to the sum of the loan amount and a loan. If the borrower’s check gets returned due to insufficient funds on the due date, the borrower can be charged a one-time returned check fee.

Written agreement with the lender

Before the loan amount is deposited in the borrower’s account, a borrower has to sign a written agreement which would contain all the details of the loan including the terms and conditions related to the payment of the loan. Go through the agreement attentively before signing it.

Borrower’s right to rescind the loan

After the loan amount is deposited in the borrower’s account, the borrower still has the right to rescind the instant cash loan. To rescind the loan, the borrower has to return the loan amount within the next business day from the day when the loan started. No fee would be charged to rescind the loan.

Collection Activity

If the borrower is unable to pay the loan in full on the due date, collection activity would begin on the loan. No extension or roll-over of the loan would be offered. The collection activity would take place as per the rules of the FDCPA (Fair Debt Collection Practices Act). A borrower cannot be threatened or harassed in any manner.

Keep the above fine points in mind to get a fair deal on a fast and reliable payday loan and to save yourself from any kind of harassment.

Office of the State Bank Commissioner regulates the direct deposit payday loans in Kansas. A borrower may contact the Office of the State Bank Commissioner at 785-296-2266, if:

a)  A lender is harassing the borrower;

b)  A borrower wants to know if a same day payday loan lender is authorised by the state bank commissioner;

c)  A borrower needs more information about payday loans, including online payday loans.

Source: The office of the State Bank Commissioner.