The growing number of payday lenders around the country, have made lawmakers from different States privy to the high interest rates that many lenders imposed their clients. Hence, the Kentucky legislature also passed its own laws that regulate payday lenders, which will protect both parties and not just the borrower.
Payday loan is the most popular way to get instant cash nowadays, especially when you have a bad credit score. The simplicity of the process and the very basic requirements makes it easier for many people to take out a loan, anytime they wish and more so, with numerous payday loans offered online.
In fact, if you need cash to tide you over until the next paycheck, you can easily apply for a payday loan near your neighborhood or online rather than with banks. Keep in mind that with banks, the loan process take a long time and loan officer would not grant loans to individuals with bad credit score for personal loans unless they have collateral.
Kentucky Payday Loans Limits
Under the State of Kentucky, a borrower can only have 2 payday loans in every two weeks, but the amount of loan should not exceed a total of $500. In addition, a payday lender can charge borrowers only $15 per $100 borrowed.
Kentucky Online Payday Loans
In Kentucky, the payday lenders that solely operate online are not licensed to lend to residents according to the Department of Financial Institutions. So, a borrower of online payday loan is only required to pay the initial loan amount, and can revoke their permission to withdraw funds to payday lenders operating solely on the internet. In other words, payday lender without local office considered illegal in the State of Kentucky.
By the way, in Kentucky, a database was set up in 2010, which tracks all payday loans in the state. The database designed to monitor all loans and amount of loans that payday lenders passed out to borrowers. The database helps regulators keep track of payday lenders.Share