Chapter 16a, CONSUMER CREDIT CODE

16a-1-101. (UCCC) Short title. K.S.A. 16a-1-101 et seq., and amendments thereto, shall be known and may be cited as the uniform consumer credit code. History: L. 1973, ch. 85, § 1; L. 2024, ch. 6, § 28; January 1, 2025. KANSAS COMMENT, 2010 The Kansas uniform consumer credit code…

16a-1-102. (UCCC) Purposes; rules of construction. (1) K.S.A. 16a-1-101 et seq., and amendments thereto, shall be liberally construed and applied to promote its underlying purposes and policies. (2) The underlying purposes and policies of this act are: (a) To simplify, clarify an…

16a-1-103. (UCCC) Supplementary general principles of law applicable. The uniform consumer credit code, K.S.A. 16a-1-101 et seq., and amendments thereto, takes precedence in consumer credit transactions, the uniform commercial code and the principles of law and equity, including …

16a-1-104. (UCCC) Construction against implicit repeal. K.S.A. 16a-1-101 et seq., and amendments thereto, being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be implicitly repealed by subsequent legislation if such constructi…

16a-1-105. (UCCC) Severability. If any provision of this act or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or applicati…

16a-1-107. (UCCC) Waiver; agreement to forego rights; settlement of claims. (1) Except as otherwise provided in K.S.A. 16a-1-101 et seq., and amendments thereto, a consumer may not waive or agree to forego rights or benefits under this act. (2) A claim by a consumer against a cre…

16a-1-108. (UCCC) Effect of act on powers of organization. (1) K.S.A. 16a-1-101 et seq., and amendments thereto, prescribes maximum charges for all creditors, except lessors and those excluded by K.S.A. 16a-1-202, and amendments thereto, extends consumer credit including consumer…

16a-1-109. (UCCC) Transactions subject to act by agreement. The parties to a sale, lease or loan or modification thereof that is not a consumer credit transaction may agree in a writing signed by the parties that the transaction is subject to the provisions of K.S.A. 16a-1-101 et…

16a-1-201. (UCCC) Territorial application. (1) Except as otherwise provided in this section, K.S.A. 16a-1-101 et seq., and amendments thereto, apply to consumer credit transactions made in Kansas. For purposes of such sections of this act, a consumer credit transaction is made in…

16a-1-202. (UCCC) Exclusions. K.S.A. 16a-1-101 through 16a-6-414* do not apply to: (1) Extensions of credit to government or governmental agencies or instrumentalities; (2) the sale of insurance by an insurer if the insured is not obligated to pay installments of the premium and …

16a-1-301. General definitions. As used in K.S.A. 16a-1-101 et seq., and amendments thereto: (1) "Actuarial method" means the method of allocating payments made on a debt between the principal and the finance charge pursuant to which a payment is applied, assuming no late fees or…

16a-2-103. Computation of finance charges. (1) The provisions of this section shall apply to all consumer loans and all consumer credit sales. (2) The finance charge on a consumer loan or consumer credit sale shall be computed in accordance with the actuarial method using either …

16a-2-104. (UCCC) Payment credit date. (1) A creditor shall credit a payment to the consumer's account on the date of receipt, except when a delay in crediting does not result in a finance charge or other charge. (2) Notwithstanding subsection (1), if a creditor specifies, in a w…

16a-2-201. Finance charge for closed-end consumer credit sales. (1) This section applies only to a closed-end consumer credit sale. (2) A seller may charge a finance charge at any rate agreed to by the parties, subject, however, to the limitations on prepaid finance charges set f…

16a-2-202. Finance charge for consumer credit sales pursuant to open-end credit. (1) This section shall apply only to open-end consumer credit sales. (2) A seller may charge a finance charge at any rate agreed to by the parties. (3) A charge may be made in each billing cycle whic…

16a-2-301. (UCCC) Authority to make or service supervised loans. (1) Unless a person is exempt from licensing pursuant to K.S.A. 2025 Supp. 16a-2-311, and amendments thereto, such person shall not engage in the business of: (a) Making supervised loans; or (b) taking assignments o…

16a-2-302. (UCCC) License to make supervised loans. (1) (a) The administrator shall receive and act on all applications for licenses to make supervised loans. Any person required to be licensed pursuant to this act shall submit an application in the manner prescribed by the admin…

16a-2-303. (UCCC) Denial of application or renewal, revocation or suspension of license; disciplinary proceedings. (1) The administrator may deny an application or renewal or revoke or suspend a supervised loan license if the administrator finds, after notice and opportunity for …

16a-2-304. Records; annual reports; maintenance of records; security of records; preservation of records. (1) Every licensee and any assignee or servicer of a consumer credit transaction and every consumer credit filer shall maintain records in conformity with generally accepted …

16a-2-308. (UCCC) Regular schedule of payments; maximum loan term. Supervised loans not made pursuant to open-end credit or lender credit cards issued by a supervised lender and in which the amount financed is $1,000 or less and the principal of which is payable in more than a si…

16a-2-309. Conduct of making loans in a place of business where any other business is engaged; when permitted. A licensee may conduct the business of making loans under K.S.A. 16a-1-101 et seq., and amendments thereto, within any office, room or place of business in which any oth…

16a-2-310. Prohibited acts by persons under this act. No person required to be licensed or required to be a consumer credit filer under this act shall directly or indirectly: (a) Delay closing of a loan for the purpose of increasing interest, costs, fees or charges payable by the…

16a-2-311. Entities exempt from licensing requirements. (1) The following shall be exempt from the supervised loan licensing requirements of this act: (a) A supervised financial organization; (b) the federal deposit insurance corporation acting in its corporate capacity or as rec…

16a-2-401. Finance charge for consumer loan; prepaid finance charges. (1) For any consumer loan incurred pursuant to open-end credit, including, without limitation, a loan pursuant to a lender credit card, a lender may charge a finance charge at any rate agreed to by the parties,…

16a-2-402. (UCCC) Consumer loans pursuant to open-end credit; allowable charges per billing cycle. (1) This section applies only to consumer loans pursuant to open-end credit. (2) A charge may be made in each billing cycle which is a percentage of an amount no greater than: (a) T…

16a-2-403. Surcharge on credit or debit cards; when permitted. No person or retailer doing business in any sales, service or lease transaction with a customer may impose a surcharge on a customer who elects to use a credit card as payment unless such person or retailer discloses …

16a-2-404. Payday loans; finance charges; rights and duties. (1) On consumer loan transactions in which cash is advanced: (a) With a short term, (b) a single payment repayment is anticipated, and (c) such cash advance is equal to or less than $500, a licensed or supervised lender…

16a-2-405. Payday loans to military borrowers; restrictions. (a) Any person who makes a loan under the provisions of K.S.A. 16a-2-404, and amendments thereto, shall: (1) Not garnish any wages or salary paid to a military borrower for service in the armed forces. (2) Defer all col…

16a-2-501. (UCCC) Additional charges permitted. (1) In addition to the finance charge permitted by the parts of this article on maximum finance charges for consumer credit sales and consumer loans, a creditor may contract for and receive the following additional charges in connec…

16a-2-502. (UCCC) Late fees. (1) The parties to a consumer credit transaction may contract for a late fee on any installment not paid in full within 10 calendar days after its scheduled or deferred due date in an amount not exceeding 5% of the unpaid amount of the installment or …

16a-2-504. (UCCC) Finance charge on refinancing. With respect to a consumer credit transaction, the creditor may by agreement with the consumer refinance the unpaid balance, including any accrued charges. For the purpose of determining the finance charge permitted, the amount fin…

16a-2-505. (UCCC) Finance charge on consolidation. (1) If a consumer owes an unpaid balance to a creditor with respect to a consumer credit transaction and becomes obligated on another consumer credit transaction with the same creditor, the parties may agree to a consolidation re…

16a-2-506. (UCCC) Advances to perform covenants of consumer. (1) If a consumer credit transaction agreement requires a consumer to insure or preserve the collateral and the consumer fails to do so, after providing the consumer prior notification and a reasonable opportunity to pe…

16a-2-507. (UCCC) Recovery of collection costs and attorney fees. (1) (a) With respect to a consumer credit transaction, the agreement may provide for the payment by the debtor of reasonable costs of collection paid to outside parties, including, but not limited to, court costs, …

16a-2-508. (UCCC) Conversion to open-end credit. The parties may agree to add the unpaid balance of a consumer credit transaction not made pursuant to open-end credit to the consumer's open-end credit account with the creditor. The unpaid balance so added shall be an amount equal…

16a-2-509. (UCCC) Right to prepay. The consumer may prepay in full the unpaid balance of a consumer credit transaction at any time without penalty. History: L. 1973, ch. 85, § 37; L. 1993, ch. 200, § 11; January 1, 1994. KANSAS COMMENT, 2010 This section does not apply to a first…

16a-2-510. (UCCC) Prepayment; minimum charges; judgments; rebate. (1) Upon prepayment in full, but not upon a refinancing of a consumer credit transaction other than one pursuant to open-end credit, the creditor may collect or retain a minimum charge of $10, if the minimum charge…

16a-3-201. (UCCC) Consumer leases. A lessor shall disclose to the consumer the information required by rules and regulations adopted by the administrator pursuant to K.S.A. 16a-6-104, and amendments thereto. History: L. 1973, ch. 85, § 41; L. 1992, ch. 46, § 2; L. 2024, ch. 6, § …

16a-3-202. (UCCC) Notice to consumer. (1) A written agreement that requires or provides for the signature of the consumer and that evidences a consumer loan or consumer credit sale other than one pursuant to open-end credit shall contain a clear, conspicuous, and printed notice t…

16a-3-203. (UCCC) Notice of assignment and receipt of payment by assignor. (1) The consumer is authorized to pay the original creditor until he receives notification of assignment of rights to payment pursuant to a consumer credit transaction and that payment is to be made to the…

16a-3-204. (UCCC) Change in terms of open-end credit accounts. (1) If a creditor makes a change in the terms of an open-end credit account without complying with this section any additional cost or charge to the consumer resulting from the change is an excess charge and subject t…

16a-3-205. (UCCC) Receipts; statements of account; evidence of payment. (1) The creditor shall deliver or mail to the consumer, without request, a written receipt for each payment by coin or currency on an obligation pursuant to a consumer credit transaction. A periodic statement…

16a-3-206. (UCCC) Compliance with rules and regulations. A creditor shall disclose to the consumer the information required by the rules and regulations adopted by the administrator pursuant to K.S.A. 16a-6-104, and amendments thereto. History: L. 1973, ch. 85, § 46; L. 1981, ch.…

16a-3-208. Advertising; prohibited conduct. (1) No person shall make, directly or indirectly, a false, misleading or deceptive advertisement regarding loans or the availability of loans. (2) No person shall advertise the size of any loan, security required for a loan, rate of cha…

16a-3-209. Computation of any period of time under act. (a) Unless otherwise specifically stated, for the purposes of K.S.A. 16a-1-101 et seq., and amendments thereto, in computing any period of time, calendar days shall be used. The day of the act, event or default from which th…

16a-3-210. Electronic writings or signatures authorized. (1) Any writing or signature required by this act may be provided or executed using an electronic format pursuant to K.S.A. 16-1601 et seq., and amendments thereto. (2) If a consumer agrees in writing to the use of an elect…

16a-3-301. (UCCC) Security in sales or leases. (1) With respect to a consumer credit sale, a seller may take a security interest in the property sold. In addition, a seller may take a security interest in goods upon which services are performed or in which goods sold are installe…

16a-3-302. (UCCC) Cross-collateral. (1) In addition to contracting for a security interest pursuant to the provisions on security in sales or leases, a seller in a consumer credit sale may secure the debt arising from the sale by contracting for a security interest in other prope…

16a-3-303. (UCCC) Debt secured by cross-collateral. (1) If debts arising from two or more consumer credit sales, other than sales pursuant to open-end credit, are secured by cross-collateral or consolidated into one debt payable on a single schedule of payments, and the debt is s…

16a-3-304. (UCCC) Use of multiple agreements. (1) No creditor may engage in a pattern or practice of using multiple agreements to obtain a higher finance charge than would otherwise be permitted by the provisions of K.S.A. 16a-1-101 et seq., and amendments thereto. (2) The excess…