Kentucky Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Kentucky and what amounts, interest rates and repayment terms are set by the state's Legislation.

Legal Payday Loans Online for Washington residents Apply online

kentucky payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

60 day(s)
Minimum Loan Term

Minimum Loan Term

It’s the minimum period of time within which you are allowed to pay off your loan.

14 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

$15 per $100 on face value of check + $1 database fee

To be on the safe side, it's always better to be aware of your rights. Study the laws, rules, and regulations concerning Payday Loans and other short-term cash advance in Kentucky. 

Compare top legit Payday Lenders in Kentucky:

Table of Contents:

Are Payday Loans legal in Kentucky?

Kentucky Payday Loan Terms and Amounts

Kentucky Payday Loans online laws

Kentucky Payday Loans interest rates, fees and other finance charges

Kentucky Payday Loans direct lenders regulations

Kentucky Payday Loans consumer information

Legitimate Payday Loans online with NO credit check in Kentucky

Do Kentucky laws allow Payday Loans for bad credit borrowers?

Legit Payday Loans in Kentucky collection practices

Kentucky Payday Loans legislation latest changes

Kentucky Payday Loans historical background

Consider Kentucky Payday Loans alternatives to get instant cash

Are Payday Loans Legal in Kentucky?

Short-term Payday Loans are legal in the state of and are mostly regulated through Kentucky Rev. Stat. Ann. §§ 286.9.010 et seq..

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

Read more: Payday Loans in Kentucky

The main Payday Loan requirements in Kentucky are:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

In Kentucky you can legally apply for up to $500 Payday loans online. It should be repaid within maximum  60 day(s). Earlier payments don’t contemplate any additional penalty fees. The maximum APR is 460.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Kentucky Payday Loan Terms and Amounts 

Kentucky residents who are eligible for a Payday Loan can get up to $500 cash advance per contract. The repayment term is capped at 14 - 60 days.

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Kentucky.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Kentucky: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Kentucky Payday Loans online laws 

Payday loans from both storefront and online lenders are legal in the state of Kentucky. But the companies should operate according to the Kentucky Office of Financial Institutions, 1025 Capital Center Drive, Suite 200 Frankfort KY 40601, (800) 223-2579 regulations.

Though there're some limits on how payday loans direct lenders should run businesses, they are minimal: maximum $500 loan amount, 14 - 60 days repayment term, maximum 460.00% APR. 

Still the precise Payday loan amount in total, as well as fees and any surcharges, with APR rate indicated, must be revealed within the contract you're signing. 
The lender is obliged to supply you with a fees schedule listing all the fees it's getting to make. All the amounts must be indicated with APR rates (400 – 1,200% range) and exact fees amounts. Lending agencies must indicate a telephone number within the contract you'll use to file any complaints or clarify any questions.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn't affect your credit score. 

Kentucky Payday Loans interest rates, fees and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Kentucky is 460.00%. If you borrow $100 for 4 days you are going to be charged  $17.65 for 14 day $100 loan. 

Besides, the total cost of a Payday Loan includes some additional fees. Kentucky lending rules allow to charge One NSF fee.

In 2014, payday lenders stripped away $122 million in fees, a 16% increase since 2010 ($105 million). Payday lenders are charging more too. The average fees paid by a typical payday loan borrower have increased 8%, from $529 in 2010 to over $583 in 2014. - 2015 Fast Facts: Payday Loans in Kentucky

Kentucky Payday Loan Debt Trap Report.pdf

The law obligates Kentucky Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Kentucky Payday Loans direct lenders regulations 

By 2008, 782 licensed payday lenders operated in 95 counties across the Commonwealth of Kentucky. Over the past 20 years, the industry has established over 22,000 locations and produced as much as $27 billion in annual loan volume nationwide.

According to Kentucky payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loan direct lenders and lenders in a store near you.
Now, payday lenders are operating online to make it faster, easier and more convenient for borrowers to get the necessary funds. However, it is often illegal for online payday lenders to make loans to Kentucky consumers. Payday lenders, or direct deposit lenders, must be licensed by the state in order to run a lending business in Kentucky and to be licensed, the lender is required to have a physical location in the state. Kentucky has put these laws in place to prevent consumers
from getting scammed on the web, and you should apply for online payday lenders loans with caution.

But Kentucky Payday Loan lenders are prohibited to threaten you for late payments or loan default and conduct any criminal actions against you.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Kentucky state law.

Kentucky Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Kentucky. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions None
Cooling-off period None
NSF fee One NSF fee
Criminal actions Prohibited

Look for more detailed information on the official Kentucky state regulator website - Kentucky Office of Financial Institutions, 1025 Capital Center Drive, Suite 200 Frankfort KY 40601, (800) 223-2579.

Legitimate Payday Loans Online with NO credit check in Kentucky 

Looking for a legal Payday Loan with No credit check in Kentucky? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history, Kentucky law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Kentucky Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Kentucky law allow Payday Loans for bad credit borrowers?

The average credit score in Kentucky is 663, placing it in the good range. But it doesn't mean that those who have a worse credit can't apply for a Payday Loan in Kentucky. 

  • First of all, there're a lot of legit direct lenders in Kentucky providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Kentucky collection practices 

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Kentucky direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Kentucky it's One NSF fee

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Kentucky. The laws limit the collection actions lenders can take – When a borrower has failed to repay a Kentucky payday loan, the laws dictate that lenders are not allowed to take any legal action against that borrower unless the individual has closed his or her checking account prior to repaying the debt in full. This essentially means that borrowers who maintain their checking accounts and who are unable to repay payday loans will be protected from payday loan lenders’ attempts to sue them or garnish their wages.

If you think that your payday lender violates the Kentucky Payday Loans law, you may file a written complaint with Kentucky Office of Financial Institutions, 1025 Capital Center Drive, Suite 200 Frankfort KY 40601, (800) 223-2579. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Kentucky Payday Loans latest changes 

In March 2019 a new bill banning all new payday cash advance providers in the state was passed into law. At the moment, there’s only one state license available. Under the new law, there would be a check-cashing license for businesses that charge a fee for cashing a check, and a deferred deposit license for payday loan providers that offer high-interest, short-term loans. Payday loan providers that already have a state license are allowed to continue to operate.

Kentucky Payday Loans historical background 

The history of Payday Loans in Kentucky
1992 The bill required check cashers to be licensed but they could charge any fees for deffered deposit transactions.
1992 - 1998 Deferred deposit transactions were growing successfully without any interest rate or fee caps.
1998 The “service fees” for deffered deposit transactions were capped at $15 per $100.
1999 It was found out that all deferred deposit businesses were not supposed to be exempt from the state usury laws which meant that it was illegal.
2006 Payday Loans offered to the military were limited at the APR of 36%.
2009 The number of simultaneous loans was limited to two loans with the total amount of $500.
2010 The state's database Kentucky Deferred Presentment Transaction System was added.
2014 Another attempt to limit the rates at 36% was made but no changes followed.
June 2, 2016 The Consumer Financial Protection Bureau (CFPB) proposed a Payday Loan Rule that hasn’t yet fully come into effect (the federal rule is expected in November 2020).
2018 One more attempt to limit the interest failed.

Kentucky Payday Loan alternatives

If you're looking for instant cash advance in Kentucky but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for a Kentucky Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Consider borrowing from a bank or credit union, Kentucky Credit Union, Louisville Federal Credit Union, for example.
  • Qualify for one of Federal or Kentucky state financial assistance programs: Kentucky Financial Assistance Programs, Temporary Assistance for Needy Families (TANF), Kentucky Children’s Health Insurance Program (KCHIP), Food Benefits/EBT and many others depending on your needs.

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