Payday Loans in Kansas: Subprime Report
Nickname: The Sunflower State
Population: 2.91 million
When it comes to money management, we all try to be as prudent as possible. Nothing new with the common truth—it’s hard to earn and very simple to waste. But why payday loans in Kansas are so popular then? Despite our prudency, despite common hate on being in debt, the story is quite the same every year. Several billion of Americans choose to go to a lender for a loan. More specifically, every tenth adult American citizen is a client of a payday store.1
Once again, there is nothing new in the situation. America is living on a credit since the first credit card has been invented. It is an old American habit we can say. The problem is; the industry of borrowing and lending has changed. The laws have changed too. And these changes are in favor of lenders not common people.
The results of these changes are rather controversial. On the one hand, it is much easier now to obtain funds when strapped for cash. On the other hand, there are too many lenders, who can offer a payday loan to people. There are so many of them that some people just do not seek other options. And we have an interesting situation there. There are a lot of fake alternatives, which are, in fact, alike in their nature. It’s like you go to the grocery to buy eggs. There are different boxes –of plastic and of cardboard. The labels are different too, but it’s the same eggs in all boxes. And the price differs because of bright labels.
The client looking for a cash advance finds themselves in the same position. All the services are more or less alike. So what can we do here?
The History of Payday Loans in Kansas; a little bit of retrospective
To start with, the range of choices is a blessing of modern reality. Not that payday loans Kansas are new invention, not at all! As you understand, people borrow nowadays, they borrowed in the past and they, probably will borrow couple of centuries from now. All the difference is – who the lenders are.
For example, our ancestors took tools to use and coins from their more lucky and prosperous fellows. Or they could take seedlings, and cover the debt with the part of harvested fruits.
In Medieval period lending became a more or less professional sphere for the representatives of particular nations. Such as Jews and Italians. They are the European bankers historically. And French kings could receive gold from the Templars, for the rate of course, not for free.
As for America, we can say that our country is comparatively young. But its lending industry was pretty developed long before online payday loans in Kansas appeared on financial stage. The exact date is unknown though. But we know that in 1950-s the financial laws changed in the country and it became legal for people to take small loans. It was the carte blanche for many loan sharks who gave loans for high rates and short-terms.
This happened because the banks found small loans unprofitable. And more than 30 years later classic payday loans appeared in the US. To the credit of the state, the administration understood soon, that the sphere needs regulations. Kansas was, probably the first state, where legal measures were taken. In 1993 the first bill HB 2197 stepped into action. It put certain limits to the size of principal and rates. In 2004, it was updated and it still regulates both offline and online loans Kansas.
Why Choose Payday Loans in Kansas? The variety of reasons
They say that only the death and taxes are certain. It’s true, but the reality seems to add the debt to this row. At least, it’s fair for America, as too many people use payday loans in Kansas. Just to be objective, the situation in other states is similar. If we reference at the PEW report, we will see the facts. 12 million of the adult American population use payday loans as a quick solution for the financial hardships1. Too many people are constantly living in this “Borrow-and-repay” cycle, don’t you think so?
We will discuss later, why we call it a cycle. For now let’s try to figure out, why people use online payday loans Kansas and do not go for other options.
Mostly, this happens because the lenders promote their service as the most available, the most affordable and the most comfortable solution. They say, the larger part of borrowers uses it for emergencies. And this kind of promotion is partly true. The lenders don’t require much, their demands are mild and easy to fit in. You can get a money amount you need fast enough. And the bait of payday loans Kansas no credit check is true as well, no one’s gonna ask about your credit scores.
Let’s make a small conclusion:
- Mild demands;
- No credit score talk;
- High chances of approval;
- You can get it online.
It looks perfect! What the problem than? In short:
- The term short as a blink;
- The APR as high as the Mount Everest.
Seriously, with the average term of just two weeks and the APR that can reach more than 600%.2 It’s nearly impossible not to default, for a borrower earning around $30,000 per year.
Guides to Payday in Kansas Cities. What to expect?
So, what about those costly loans so many of us choose despite the risk? Let’s estimate the situation from the different angles.
First of all, Kansas is one of those 34 states that deemed the practice of payday lending legal. Moreover, the Center for Responsible Lending acquisition defines Kansas as the state without serious regulation.2 For the sake of justice we have to mention that it’s quite disputable. There are regulations and pretty settled ones, in comparison with some other states.
The CRL is a trustworthy organization without any doubts, and we can rely on their data. Moreover, it’s enough to remember that only 30% of payday customers avoid successive loans to understand one thing. If people fall into a debt trap, the protection the laws can give to them is not enough.
If advertised $15 for $100 borrowed (the average rate) are so affordable and cheep what’s the profit for lenders?
But the profit is obvious. These 15% make 391% of APR. In other words, customer pays for times as much as borrow. The average loan size for Kansas is $350. You take $350 and return $402.5 in two weeks. Not much, right? But the average salary in America this year is $905 per week.3 In two weeks you have $1810. Pay the debt, and after that you’ll have $1407. This is what you get to make different payments from. Groceries, food, transportation, housing, the rent maybe. The bills and the healthcare. Add emergencies if you are not lucky. The odds are high that after all these routine transactions you’ll find a deficit in your budget.
Once again, the situation is common for the US, not specifically for KS.
Payday loans in Topeka, Kansas
So, what are the chances for you to use payday loans in Topeka KS? To make a guess about it, we need to have a look at the data. To start with, the population of the Kansas capital city is 125,904. Among them, 3.2% do not have a job. Thus, more than 4,000 of people can get into debt spiral. Besides that, 16.7% are in poverty. Add 21,000 to the target group. Add 24.7% of people of color community7.
Why? Well, sad but true: lenders target at non-white population. This adds 31,000 more. And now we do not take into account women, single parents and youngsters without credit history.
And now, imagine for a second the size of lenders’ gain if every adult from mentioned groups takes a loan.
Payday loans in Kansas City
Kansas City is the third largest city in the state, and yet, it is not that big. Just 152,958 of people live there. Not a small town, sure, but neither an urban giant. There are about ten large employers, including two universities and The General Motors Corporation. Besides that, there are around 9,000 of smaller businesses, according to Census. It’s great for the area of this size. There should have been no place for payday loans in Kansas City. But they are there and feeling good. Even The Median household income $41,671 doesn’t change it.
Why? Unemployment and poverty percent of 22.3% make people borrow and live in the trap. And this is why the situation the picturesque city with great history and bright colorful streets is warring.7
Payday loans in Wichita, Kansas
Wichita, probably have all the rights to be claimed the Pride of Kansas. The biggest city of the state, with population of almost 400,000. The center of culture, tourism and manufacturing industry. And the center of the military and civil aircraft. It has a lot to show and offer you. Reliable plains, wonderful healthcare, a lot of interesting places from a “must-see” list. For example, The Museum of World Treasures, The Museum of Anthropology, beautiful gardens and others.
It’s a wonderful place, where well-developed infrastructure combines with not so low Median Household income $48,982 and moderate average rent $767. Unpleasant thing that makes the question about payday loans in Wichita, KS acute – the percent of families struggling with poverty. Those 16.9% are likely to take a risk and sign the agreement with some payday lender.7
Payday loans in Overland Park, Kansas
Overland Park is a special place of the US. Sure, those who sell payday loans in Overland Park, KS will find their clients, as the city is expensive to live in. Yes, it is, and you can see that after taking a look at average rent price. Just for your information, it’s $1,084. Sure, it is not, once again, the highest in the States, but noticeable for the budget.
At the same time, just 5.8% of the city population live in need, and the Median Household Income is high – $78,2177.
In general, it’s a place of great chances. There are lots of job options, many large and small employers. If you are adventurous and have brevity to change your life, it’s a place where it can change for the better.
Payday loans in Olathe, Kansas
Speaking of prosperous places; here is another one for the lenders of payday loans in Olathe, KS to have difficulties. It is a typical middle-class town with strong contacts within the community. The city is good to live in, or come back to.
The poverty rate is slightly higher than in Overland Park – 6.1%. But the median Household income is higher as well – $82,6497. It’s quite a good characteristic for an area.
Payday loans in Lawrence, Kansas
Lawrence is the smallest of the cities we discuss. And payday loans in Lawrence, KS will, unfortunately find their customers. The population of the city is less than 100,000 and unemployment rate is lower than nationwide. But at the same time, the poverty rate is 21.8%.7 This level makes the city kind of target community for loans sellers.
An Analysis of Payday Loans in Kansas
So, as we understood, the problems of payday loans in Kansas are short terms, high rates and a lot of charges. They are roots of the problems for the borrowers, and the source of benefits for the lenders.
Let’s see, how problematic they are for ones and beneficial for others. Here some numbers that will help to understand the whole process. First important fact; there are 352 payday lending stores in Kansas state. And here the online lending options are not counted. Each of these 352 sells 3,541 loans per year. The average loan size in the state is, as we said, $350. The total of the given loans is $436,251,200. Astronomical sum. But the lenders get it all back, plus the fees for their service. And the fees make $65,437,6802. Not bad, right?
Now, about the borrowers. Here, the most important thing is that payday lending targets people with low incomes like $30,000 per year1. Students, young females, divorced mothers, POC communities are at risk. And that’s not true, that people use loans for emergence expenses. Most of them pay bills and everyday needs like food with them. 7 of 10 cannot afford a timely payment and roll the credits over for additional fees1. Or they repay the loan and take the new one almost immediately. And do that again and again.
This manner, payday lending squeezes the pockets of common people and the state economy as well.
Kansas Payday Loan Rules and Regulations
The first law regulating Kansas cash advance was accepted in the state in 1993 and till 2004 it stayed the same. In 2004 the legislation was upgraded in favor of consumers.
According to the law, no borrower can get more than two unpaid loans at the same time. The lenders must track all the transactions they made. Also, every loan should be documented in written agreement signed by debtor and the creditor. This agreement is to be written in languages according to the parties will. The contract should contain the contacts of the borrower, the date when loan is taken and the due date.
As for Kansas payday loans taken online the regulations are the same.
Kansas Rates and Terms
The Senate of the state limed the rates for Kansas payday loans in 2004. From that moment the rate for a cash advance in Kansas cannot be more than 15%. Thus, the APR is permanent – 391%.
The term from the day, when the creditor gets the money, till the due date cannot be less than a week. It also cannot be longer, than 30 days.
The amount of the loan can be as large as $500. The smallest amount possible is not defined4.
That’s all the basic information you need to know about payday services in the state of Kansas. But, we kindly remind you of the necessity to read the agreement closely to study the details.
Kansas Payday Loan Restrictions
First and foremost, remember that no lender can harm you in case of defaulted online payday loans in Kansas. Neither can they threat to harm you or your family. Any illegal actions are prohibited.
The lender cannot give a lender more than three successive loans in 30 days. The law prohibits dividing the principal of the loan into parts, to make fees larger.
Additional fees are prohibited as well. The rate can never be more than 15% for $1004. The rollovers are illegal, but many consumers take a new loan the same day they repay the previous one.
By the way, technically, the debtor has no right to use a next loan to repay the previous one. In turn, the creditor has no right to use any practices and ways to make the client pay extra money.
Consumer Protection in Kansas
As you see, online payday loans in Kansas can be quite dangerous to use. That is why the government along with the lowers tries to take measures to protect consumers. The measures should diminish the odds of being trapped in debt.
Thus, The Consumer Financial Protection Bureau was established in 2011 with the bill signed by Obama. Since then the CFPBS has started many projects to protect people from predatory lending.
For now, the following protective measures exist in Kansas.
Any creditor has to return the fees to the debtor, if the later change his or her mind and give the principal back. You can do that till the end of the day after the loan was taken.
If a client don’t have enough funds, and the lender fails to withdraw the sum necessary, the NFS is charged. But the lender can do so just one time.
But for now, the military is the most protected group. No lender in the USA can offer loans with more than 36% APR to members of the Armed Forces. Any collection practices towards active military deployed on the mission are prohibited.
How Do I Apply for a Payday Loan in Kansas from mypaydayloancash?
Despite the dangers of unwise usage of payday loans in KS State, sometimes they are really the only option available. The reasons can be different; bad credit score, lack of time, the absence of the credit report.
Whatever reasons you have, you can always apply for our assistance. If there is a necessity of online cash advance for Kansas residents, we welcome them at our site. All we need to know to find the best option for you is the size of the principle, and the email of our guest.
The final thoughts about payday loans in Kansas
So, for those who are sure that online payday loans in Kansas are their quick salvation is our claim. If you live in Shawnee, Garden City, Emporia or Leavenworth, we will be glad to see you among our clients. The same is fair for the people of Junction City, Manhattan, Hutchinson, and Lenexa. We, as well, are ready to work productively and find the best credits for Salina, Dodge City, Derby and Leawood. But we want to repeat once again – in most cases there are alternatives to the payday loan. This step you should take only after close consideration.
- “Payday lending in America: Who Borrows, Where They Borrow, and Why” Pewtrusts.org. Accessed July 8, 2019 http://www.pewtrusts.org/~/media/legacy/uploadedfiles/pcs_assets/2012/PewPaydayLendingReportpdf.pdf
- CRL. “Payday Lending Abuses and Predatory Practices”. responsiblelending.org. Accessed July 8, 2019 http://www.responsiblelending.org/state-of-lending/reports/10-Payday-Loans.pdf
- The BLS. “Usual Weekly Earnings of Wage and Salary Workers First Quarter 2019”. bls.gov. Accessed July 8, 2019 https://www.bls.gov/news.release/pdf/wkyeng.pdf
- Kansas Legislative Research Department. kslegresearch.org. Accessed July 8, 2019 http://www.kslegresearch.org/KLRD-web/Publications/BriefingBook/2017Briefs/E-2-PaydayLoanRegulation.pdf
- US Census.gov. Accessed July 8, 2019 from https://www.census.gov/library/publications/2018/acs/acsbr17-01.html
- “Median household income in every US state from the Census Bureau”. Cnbc.com. Accessed July 8, 2019 https://www.cnbc.com/2018/12/07/median-household-income-in-every-us-state-from-the-census-bureau.html
- US Census Bureau. “QuickFacts Kansas”. Census.gov. Accessed July 8, 2019 https://www.census.gov/quickfacts/KS
- The Ballotpedia. “State Debt”. ballotpedia.org. Accessed July 8, 2019 https://ballotpedia.org/State_debt