Chapter 16a, CONSUMER CREDIT CODE

16a-3-305. (UCCC) No assignment of earnings. (1) No creditor may take an assignment of earnings of the consumer for payment or as security for payment of a debt arising out of a consumer credit transaction. An assignment of earnings in violation of this section is unenforceable b…

16a-3-306. (UCCC) Authorization to confess judgment prohibited. No consumer or any other person acting on the consumer's behalf may authorize any person to confess judgment on a claim arising out of a consumer credit transaction. An authorization in violation of this section shal…

16a-3-307. (UCCC) Certain negotiable instruments prohibited. With respect to a consumer credit sale or consumer lease, the creditor shall only accept currently dated negotiable instruments as evidence of the obligation of the buyer or lessee. For purposes of this section, a credi…

16a-3-308. (UCCC) Balloon payments. In a consumer credit transaction with a balloon payment, other than one pursuant to open-end credit, the consumer shall have the right to refinance the amount of that payment at the time it is due without penalty. The terms of the refinancing s…

16a-3-309. (UCCC) Referral sales. (1) (a) In a consumer credit sale, no seller shall offer or give a rebate, discount or otherwise pay value to the buyer in consideration of the buyer giving the seller the names of third parties, or otherwise assist the seller in making a sale to…

16a-3-401. (UCCC) Restriction on liability in consumer lease. The obligation of a lessee upon expiration of a consumer lease may not exceed twice the average payment allocable to a monthly period under the lease. This limitation does not apply to charges for damages to the leased…

16a-3-402. (UCCC) Limitation on default charges. Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit transaction may not provide for any charges as a result of default by the consumer other than those author…

16a-3-403. (UCCC) Credit card issuer subject to defenses. (1) If the issuer of a credit card, other than a lender credit card, is the seller or lessor or a person related to the seller or lessor, or if the seller or lessor is licensed, franchised or permitted by the issuer to do …

16a-3-404. (UCCC) Assignee subject to defenses; application of payments received by assignee; limitation of actions; assignee may require seller or lessor to repurchase obligation; joinder of parties; procedure. (1) An assignee of the rights of the seller or lessor under a consum…

16a-3-405. (UCCC) Lender subject to defenses arising from sales and leases. (1) A lender, other than the issuer of a lender credit card, who, with respect to a particular transaction, makes a consumer loan for the purpose of enabling a consumer to buy or lease from a particular s…

16a-4-102. (UCCC) Scope. (1) Except as provided in subsection (2), this article applies to insurance provided or to be provided in relation to a consumer credit transaction. (2) The provision on cancellation by a creditor applies to loans the primary purpose of which is the finan…

16a-4-104. (UCCC) Creditor's provision of and charge for insurance; excess amount of charge. (1) Except as otherwise provided in this article and subject to the provisions on additional charges and maximum finance charges, a creditor may agree to provide insurance, and may contra…

16a-4-105. (UCCC) Conditions applying to insurance to be provided by creditor. If a creditor agrees with a consumer to provide insurance: (1) The insurance shall be evidenced by an individual policy or certificate of insurance delivered to the consumer, or sent to such consumer a…

16a-4-106. (UCCC) Unconscionability. (1) In applying the provisions of this act on unconscionability to a separate charge for insurance, consideration shall be given, among other factors, to: (a) Potential benefits to the consumer including the satisfaction of his obligations; (b…

16a-4-107. (UCCC) Maximum charge by creditor for insurance. (1) Except as provided in subsection (2), if a creditor contracts for or receives a separate charge for insurance, the amount charged to the consumer for the insurance may not exceed the premium to be charged by the insu…

16a-4-108. (UCCC) Refund or credit required; amount. (1) Upon prepayment in full of a consumer credit sale or consumer loan by the proceeds of consumer credit insurance, the consumer or such consumer's estate is entitled to a refund of any portion of a separate charge for insuran…

16a-4-109. (UCCC) Existing insurance; choice of insurer; notice of option. If a creditor requires insurance, the consumer shall have the option of providing the required insurance through an existing policy of insurance owned or controlled by the consumer, or through a policy obt…

16a-4-110. (UCCC) Charge for insurance in connection with a refinancing or consolidation; duplicate charges. (1) A creditor may not contract for or receive a separate charge for insurance in connection with a refinancing or a consolidation, unless: (a) The consumer agrees at or b…

16a-4-111. (UCCC) Cooperation between administrator and commissioner of insurance. The administrator and the commissioner of insurance are authorized and directed to consult and assist one another in maintaining compliance with this article. They may jointly pursue investigations…

16a-4-112. (UCCC) Administrative action of commissioner of insurance; rules and regulations. (1) To the extent that the commissioner's responsibility under this article requires, the commissioner of insurance shall adopt rules and regulations pursuant to this act regarding insure…

16a-4-201. (UCCC) Term of insurance. (1) Consumer credit insurance provided by a creditor may be subject to the furnishing of evidence of insurability satisfactory to the insurer. Whether or not such evidence is required, the term of the insurance shall commence no later than whe…

16a-4-202. (UCCC) Amount of insurance. (1) Except as provided in subsection (2): (a) In the case of consumer credit insurance providing life coverage, the amount of insurance may not initially exceed the debt and, if the debt is payable in installments, may not at any time exceed…

16a-4-203. (UCCC) Filing and approval of rates and forms. (1) A creditor may not use a form or a schedule of premium rates or charges, the filing of which is required by this section, if the commissioner of insurance has disapproved the form or schedule and has notified the insur…

16a-4-301. (UCCC) Property insurance. (1) A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless: (a) The insurance covers a substantial risk of loss of or damage to property related to the credit transaction; (b) t…

16a-4-302. (UCCC) Insurance on creditor's interest only. If a creditor contracts for or receives a separate charge for insurance against loss of or damage to property, the risk of loss or damage not willfully caused by the consumer is on the consumer only to the extent of any def…

16a-4-303. (UCCC) Liability insurance. A creditor may not contract for or receive a separate charge for insurance against liability unless the insurance covers a substantial risk of liability arising out of the ownership or use of property related to the credit transaction. Histo…

16a-4-304. (UCCC) Cancellation by creditor. A creditor shall not request cancellation of a policy of property or liability insurance except after the consumer's default or in accordance with a written authorization by the consumer, and in either case the cancellation shall not ta…

16a-5-103. (UCCC) Restrictions on deficiency judgments. (1) This section applies to a deficiency on a consumer credit sale of goods or services and on a consumer loan in which the lender is subject to defenses arising from sales; a consumer is not liable for a deficiency unless t…

16a-5-107. (UCCC) Unenforceable extensions of credit. (1) If it is the understanding of the creditor and the consumer that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person, reputation or…

16a-5-108. (UCCC) Unconscionability of act or practice; inducement by unconscionable conduct. (1) The unconscionability of an act or practice is a question for the trier of fact. (2) With respect to a consumer credit transaction, if the trier of fact finds: (a) The agreement was …

16a-5-109. (UCCC) Default. An agreement of the parties to a consumer credit transaction with respect to default on the part of the consumer is enforceable only to the extent that: (1) The consumer fails to make a payment as required by agreement; or (2) the prospect of payment, p…

16a-5-111. (UCCC) Cure of default. (1) After a consumer has been in default for 10 days for failure to make a required payment in a consumer credit transaction payable in installments, a creditor may give the consumer the notice described in this section. A creditor gives notice …

16a-5-201. (UCCC) Effect of violations on rights of parties. (1) If a creditor has violated the provisions of this act applying to collection of excess charges or enforcement of rights, restrictions on interests in land as security, limitations on the schedule of payments or loan…

16a-5-202. (UCCC) Refunds and penalties as setoff to obligation. Refunds or penalties to which the consumer is entitled pursuant to this part may be set off against the consumer's obligation, and may be raised as a defense to a suit on the obligation without regard to the time li…

16a-5-203. (UCCC) Civil liability for violation of disclosure provisions. (1) Except as otherwise provided in this section, a creditor who fails to disclose information to a person entitled to the information under the provisions of K.S.A. 16a-1-101 et seq., and amendments theret…

16a-5-301. (UCCC) Intentional violations; criminal penalties. (1) It is unlawful for any person to violate any of the provisions of this act, any rule and regulation adopted or order issued under this act. A conviction for an intentional violation is a class A nonperson misdemean…

16a-6-104. (UCCC) Powers of administrator; enforcement of act and rules and regulations; written administrative interpretations; nationwide mortgage licensing system and registry; validity of liability imposed; establishment of fees. (1) In addition to other powers granted by thi…

16a-6-105. (UCCC) Administrative powers with respect to supervised financial organizations. (1) With respect to supervised financial organizations, the powers of examination and investigation and administrative enforcement shall be exercised by the official or agency to whose sup…

16a-6-106. (UCCC) Examination and investigatory powers; costs. (1) The administrator may: (a) Conduct examinations or investigations within or outside of this state as necessary to determine whether any license should be granted, denied or revoked or whether any person has violat…

16a-6-108. Enforcement of act; cease and desist orders; penalties; appeals. (1) If the administrator determines after notice and opportunity for a hearing that any person has engaged, is engaging or is about to engage in any act or practice constituting a violation of any provisi…

16a-6-109. (UCCC) Assurance of discontinuance. If it is claimed that a person has engaged in conduct subject to an order by the administrator or by a court, the administrator may accept an assurance in writing that the person will not engage in the conduct in the future. Failure …

16a-6-110. (UCCC) Injunctions against violations of act. The administrator may bring a civil action to restrain a person from violating the provisions of K.S.A. 16a-1-101 et seq., and amendments thereto, or any rules or regulations adopted thereunder and for other appropriate rel…

16a-6-111. (UCCC) Injunctions against unconscionable agreements and fraudulent or unconscionable conduct. (1) The administrator may bring a civil action to restrain a creditor or a person acting on such creditor's or person's behalf from engaging in a course of: (a) Making or enf…

16a-6-112. (UCCC) Temporary relief. With respect to an action brought to enjoin violations of K.S.A. 16a-1-101 et seq., and amendments thereto, or unconscionable agreements or fraudulent or unconscionable conduct, the administrator may petition the court for appropriate temporary…

16a-6-113. (UCCC) Civil actions by administrator. (1) After demand, the administrator may bring a civil action against a creditor for all amounts of money, other than penalties, which a consumer or class of consumers has a right to recover explicitly granted by the provisions of …

16a-6-115. (UCCC) Consumer's remedies not affected. The grant of powers to the administrator in this article does not affect remedies available to consumers under K.S.A. 16a-1-101 et seq., and amendments thereto, or under other principles of law or equity. History: L. 1973, ch. 8…

16a-6-116. (UCCC) Venue. The administrator may bring actions or proceedings in a court in a county in which an act on which the action or proceeding is based occurred or in a county in which respondent resides or transacts business. History: L. 1973, ch. 85, § 108; January 1, 197…

16a-6-201. (UCCC) Applicability. (1) This part applies to any creditor engaged in this state in entering into consumer credit transactions and to any person who accepts assignments of and undertakes collection of payments from or assignments of and enforces rights against debtors…

16a-6-202. (UCCC) Notice filed by consumer credit filers; amended filings. (1) Any person subject to K.S.A. 16a-6-201, and amendments thereto, shall file notice with the administrator within 30 days after commencing business in this state, and, thereafter, in accordance with rule…

16a-6-203. Fees. (1) A consumer credit filer shall on or before August 31 of each year pay to the administrator an annual fee in an amount established pursuant to K.S.A. 16a-6-104(5), and amendments thereto, for each business location for that year. (2) Consumer credit filers who…