Kansas Attorney General Announces New Law Capping Predatory Loan Interest at 36%

TOPEKA – Attorney General Kris Kobach announced that a new law, which goes into effect July 1, 2024, will improve protection against predatory high-interest loans in Kansas. The law, which was signed by Governor Laura Kelly and passed by the legislature, caps the annual interest rate at 36% for loans between $500 and $2,500.

TOPEKA – Attorney General Kris Kobach announced that a new law, which goes into effect July 1, 2024, will improve protection against predatory high-interest loans in Kansas. The law, which was signed by Governor Laura Kelly and passed by the legislature, caps the annual interest rate at 36% for loans between $500 and $2,500. “The days of predatory lenders charging more than 250% on loans are over in Kansas,” Kobach said. “This new law provides crucial protection for Kansans, ensuring they are not trapped in a cycle of debt by exorbitant interest rates.” Previously, under the unregulated loan act, lenders could charge as much as 251% annual interest on loans from $500 to $2,500. This often led to Kansans falling into debt traps with seemingly small loans that accumulated massive interest over time. Attorney General Kobach made combating predatory loans a priority during the 2024 legislative session. The new law will provide significant relief and protection for many Kansans struggling with financial hardship.