Brief ⁽¹⁾

HB 2193, as amended, concerns payday loans as regulated in the Kansas Uniform Consumer Credit Code. The bill prohibits a payday lender and related interests from having outstanding to any borrower more than two loans at any one time. Also, each payday loan agreement must contain the notice prescribed in the bill in at least 10 point boldface type.

The House Committee further amended the bill upon re-referral to the Committee by deleting the amendments adopted by the House Committee of the Whole.

Background

HB 2193 was requested by the Administrator of the Uniform Consumer Credit Code who informed the Committee of abuses in the area of making multiple loans for the purpose of collecting additional fees. Passage of the bill, he said, establishes a limit on the number of loans a payday lender can have outstanding to a consumer at any given time, and the disclosure notice will raise awareness of consumers regarding multiple loan practices.

The bill is supported by the Kansas Payday Loan Association.

The fiscal note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi