Kentucky
How do I check if a lender is licensed in the state of Kentucky?
Browse the database of licensed lenders from the database of KY Financial Institutions.
What are the obligations a licensed lender should follow?
A lender cannot loan more than $500.00 to a consumer, moreover, it’s lender’s responsibility to ensure that the consumer does not have more than 1 outstanding deferred presentment deposit at the time of offering the service. If the consumer has an outstanding loan less than $500, the loan amount should be calculated in such a manner that 2 loan amount do not exceed $500.00 when combined.
Licensed lenders may charge maximum $15 per $100 of the face value and allowed loan term ranges from 14 days to 60 days.
No renewals, roll over, or consolidation stuffs are allowed.
Note: written agreement, signed by both the parties, is a must.
What if the check returns by the payor institution?
No criminal prosecution may be taken against the consumer if the check returns back to the lender, however, the lender can collect the charges made by the financial institute against the dishonored check provided it’s been mentioned in the terms of agreement.
If the payor financial institute (i.e. your bank) informs the lender that the check is returned due to some unwanted and fraudulent activities with the concerned account, the licensee shall not release the instrument (check) without the consent of the Commonwealth’s attorney or other investigating law enforcement authority.
Where to forward my complaints?
Office of Financial Institutes looks after the Deferred Presentment Services in KY, all the queries and complaints should be forwarded to them.
