Borrowing in Kansas: What State Law Allows

The payday loan rules in K.S.A. 16a-2-404

Payday loans in Kansas are made by lenders licensed through the Office of the State Bank Commissioner (OSBC) under the Uniform Consumer Credit Code. The statute sets the limits:

A $500 loan can cost $75. Over two weeks that works out to an APR of about 390%. The lender also can't pay off one of your payday loans with a new one, and after the due date the rate can't exceed 3% a month.

The extended payment plan, explained

Since January 1, 2025, a Kansas payday lender must offer a way out when you can't repay on the due date. Once every 12 months you can ask to convert the loan into an extended payment plan.

1. 1 Ask before the deadline. Make the request before close of business on the last business day before the loan is due, and sign an amendment to the agreement.
2. 2 Repay in at least four equal installments. Each one falls on or after a payday, or at least two weeks apart if you have no regular income.
3. 3 Pay nothing extra. As long as you keep to the plan, the lender can't add interest or fees, and you can pay it off early without penalty.
4. 4 Don't miss an installment. If you do, the lender can demand the full remaining balance.

You can't take a new payday loan while a plan is active. Lenders must post a notice about the plan where they make loans and include it in the agreement. A cheaper option may still exist: see alternatives to payday loans.

A 36% cap, with an open-end exception

For other consumer loans, K.S.A. 16a-2-401 limits closed-end credit, the kind you repay on a fixed schedule, to 36% a year. Upfront finance charges such as origination fees are limited to the lesser of 2% of the amount financed or $300. Those limits took their current form on January 1, 2025.

Kansas has no separate title loan statute, so a closed-end loan secured by your car is held to the same 36% ceiling. One exception matters: for open-end credit, such as a line of credit or a lender credit card, the statute lets the parties agree to any rate. That is how car title loans are offered in Kansas: the OSBC licenses title loan companies, and a title-secured line of credit can carry an APR well above 36%. Before you sign for a line of credit, check the APR on the disclosure and compare it with a fixed personal loan.

Debt time limits and wage protection

Kansas gives a creditor five years to sue on a written agreement (K.S.A. 60-511) and three years on a contract that isn't in writing (K.S.A. 60-512). Credit card debt is usually treated as an unwritten or open account, which means three years, but a creditor with a signed agreement may argue for five. Don't assume an old card debt is past the limit until five years have gone by; read how statutes of limitations work.

Kansas follows the federal wage garnishment limit. A creditor with a judgment can take no more than 25% of your disposable earnings for the week, or the amount above 30 times the federal minimum wage, whichever is less. Each creditor can garnish your wages only once in any 30-day period. If illness has kept you from work for more than two weeks, you can file an affidavit that delays wage garnishment until two months after you recover.

Complaints and lender checks

• Check the license on NMLS Consumer Access before you apply. The OSBC licenses payday lenders, title lenders, finance companies, debt buyers and earned wage access providers.
• File a Consumer Assistance Form with the OSBC if a licensed lender breaks the rules. Its Consumer Affairs staff opens a case, investigates if the company is under its authority and refers it elsewhere if not.
• Report a collector that calls too often or threatens you; see your rights with debt collectors. You can also complain to the CFPB.

Common questions