Ipass Kentucky Payday Lending Statutes

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Payday loans in Kentucky are regulated by Stat. Ann. 286.9-010 et seq. (Deferred Deposit Service Business and Check Cashing) loans for Kentucky families.

The Kentucky Legislature passed a statute in 2009 to protect borrowers against such lenders. The same law limits fees, finance charges, amounts, and terms.

The Kentucky Deferred Presentment Transaction System, created in May 2010, is a statewide payday lending database. It allows regulators to simply monitor all payday lending transactions and find out information regarding loan amounts, numbers, terms, fees, etc. Lenders must have viewed this step unfavorably because all their transactions should be clear and there’s no way to avoid the rule.

Kentucky loans

Kentucky law limits one borrower to two loans every two weeks.

A person can have no more than $500 in loans at once.

Charges in Kentucky

Two-week $100 loan finance fee cannot exceed $15.

Licensed lenders can’t charge more than $15 per $100 on a deposit check. Any price must be prorated up to $15. (Stat. Ann. 286.9-010 et seq.)

Kentucky’s maximum payday loan term


60-day loans are authorized.
All loans must be repaid on time because rollovers aren’t allowed.
Borrowers can get new loans as long as they repay the old ones.
Attention Consumers
From July 2020, lenders won’t have to examine borrowers’ repayment ability.
Be vigilant, assess your finances, and avoid debt.
CFPB revised rule.

For every defaulted loan, only 1 non-sufficient funds fee (amount not mentioned) can be assessed.
State officials explore criminal actions against debtors.
Kentucky’s Department of Financial Institutions has more about payday loans.

Customers can ask inquiries and check the status of their payday loans through the Kentucky Deferred Presentment Transaction System.

How to Get a Payday Loan in Kentucky

Submitting a request for a payday loan in Kentucky may be relatively simple. Consumers from different credit backgrounds may be eligible. Kentucky residents can visit a storefront lender or go online to complete a request to see if they qualify for a payday loan. If the lender approves the loan request, the borrower may receive the money in as little as one business day. To request a payday loan, borrowers must be at least 18 years of age and present the following documents:

  • Government-issued ID
  • Verifiable proof of income
  • Active bank statement
  • Personal checking account
  • Address
  • Phone number
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