Payday Loans in Kansas: Subprime Report
In 2018, about 11.9% of residents of Kansas lived below the federal poverty line (comparable to the national rate of 11.8%). The median household income for the state was $58,218, which is $3,719 below the national average of $61,937 for that year. Kansas continues to work toward an improved economy, but (as of September 2019) 3.2% of residents remain unemployed, which can put a damper on their ability to afford the essentials. And when money is a problem, Kansas residents might seek outside help through payday and title loans—options that should be avoided at all costs.
Payday Loans in Kansas
Payday loans are small, short-terms loans that usually involve less than $1,000 and are required to be paid back in 2 to 4 weeks, often at very high (3-digit) interest rates. Short terms and high interest rates often mean that these loans are very difficult for borrowers to pay back on time, which often leads to a pattern of loan renewals (or “rollovers”) that extend the life of the loan at the cost of additional fees and interest.
According to the Kansas Office of the State Bank Commissioner, as of December 31, 2013, there were 78 companies – at 365 licensed locations – offering payday loans in Kansas.
In 2012, the total payday loan volume in the state was $413,891,458 (based on a total of 1,082,716 loans for the year), and the average loan amount was $382. Figures indicate that the total payday loan volume has actually gone down to just above $300 million in 2016.
Title Loans in Kansas
Title loans are another type of predatory loan that offers short-term payback periods at high interest rates. Vehicle title loans require that borrowers provide the title to their vehicles to their lenders – the vehicle is used as collateral by the title loan lender. Although this gives borrowers access to money in the short-term, it can leave them struggling in the long-term. The lender can repossess and sell the borrower’s vehicle if the loan goes into default. So, if a title loan borrower is unable to pay back their loan on time, their options are limited: either take out another high-interest loan or potentially lose access to their vehicle. Nationally, about one in five title loan borrowers lose their vehicles in these situations.
Consumer Protection in Kansas
Whether you need money for an emergency, or you’re just short one month, don’t take the “easiest” option of payday or title loans in Kansas.
If a lender isn’t following Kansas regulations, make sure to report them. And if you’ve already fallen prey to predatory lending in Kansas, here are some recommendations for how you can reach out to get help.
How to Report a Lender in Kansas
You can attempt to resolve your issue by calling someone with authority at the company, such as the owner, president, or consumer complaint specialist. If you cannot reach a resolution, determine who regulates the entity, and then contact the Office of the State Bank Commissioner in Kansas by visiting http://www.osbckansas.org/. Once you are on the website, choose the “Consumers” tab at the top of the screen. From there you will select “File a Complaint”. Complete the Consumer Assistance Form and submit it with any supporting documentation.
- Address:700 SW Jackson, Suite 300 Topeka, KS 66603
- Phone:(785) 296-2266
- Fax:(785) 296-6037