Kansas Usury Laws

The general usury limit in the State of Kansas is 15%. On the other hand, the interest rate that has been established for judgments is set at 4% over the Federal discount rate at the maximum end.

There are more specific usury rates associated with consumers transactions in Kansas. The maximum rate for interest on a consumer personal loan in Kansas is set at 18% for the first $1,000 of any such loan. The interest rate above and beyond the $1,000 level is 14.45%. Any interest rate above and beyond these levels is considered usurious and illegal in the Sunflower State. In some instances, beyond a finding that such a loan agreement is illegal, void and unenforceable, there can be occasions in which a person making such an illicit loan can be prosecuted criminally in Kansas.

The usury laws in Kansas are codified in Kansas Statutes Annotated at KSA Chapter 16a which is known as the Kansas Consumer Code. There are other statutory provisions in Kansas Statutes Annotated that govern other types of lending practices and interest rates that are in place in the Sunflower State at this time. For example, KSA Chapter 9 governs the interest rates that can be charged by state chartered financial institutions. Finally, the Uniform Commercial Code as codified within Kansas statutes provides the parameters of interest rates that can be charged when a sale of good subject to the Uniform Commercial Code are undertaken.

In some limited instances, a RICO action can be brought in the State of Kansas if a person engages in a pattern and practice of providing personal or consumer loans to individuals at interest rates that are in excess of the usury limitations established by Kansas statutes. In this regard, however, the interest rate actually charged in order for RICO to come into play must be double the maximum interest rate permitted on personal loans as set forth in Kansas statutes. This is what commonly is known as loan sharking and can, in the limited instances described in this article, can result in criminal prosecution, a felony conviction and a prison sentence.

The information provided in this article is for informational purposes only; this article is not intended to give to you legal advice. Moreover, because the usury laws in Kansas are subject to change, we cannot guarantee the information contained in this article. However, we make every effort to keep the information in this article up to date.

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