Payday Loan Laws

Kentucky Payday loan laws. Kentucky Payday loan legislation.

$15% per $100 on face amount of check.

Minimum term of 14 days and a maximum term of 60 days. Maximum cash advance amount allowable is $500. Rollovers are prohibited.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday and Paycheck

General Stats:

Database shows that KY payday loan borrowers are indebted for 202 days a year on average. Kentucky payday lenders charge $15.00 per $100 borrowed, plus additional fees, every two weeks. This means payday loans carry at least a 391% APR.

A typical Kentucky payday borrower had 10 payday transactions, costing $562 in fees alone for a $330 loan.

90% of payday revenue is generated by borrowers with five or more loans a year.

More than 5,200 Kentuckians used one or more payday loans to solve their financial problem!

Kentucky Payday Loan Laws & Legislation State Information

Legal Status: Legal (Applies to check cashers only)

Kentucky Rev. Stat. Ann. § 286.9.010 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited

Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager
Regulator Website

Kentucky Check Cashers, Deferred Deposit and/or Payday Lenders

Complaint Form Link