Tag: Kentucky payday loan laws


Payday Loan, Deferred Deposit and Check Cashing Laws Kentucky

Kentucky Check casher laws change

The laws governing check cashing in Kentucky have changed.

Some pro-visions of House Bill 444 took effect June 25. However, most of the provisions take effect Jan. 1, 2010, as specified in the bill. Changes include legal definitions, rules for licensing, enforcement and company requirements.

The 10-year moratorium on new check cashers began July 1. At this time, Kentucky has around 750 check cashers. While new licenses may not be issued, current licenses are transfer-able or assignable, subject to approval by DFI.

DFI is procuring a database that will be operational by July 1, 2010. With real-time access through an Internet connection, check cashers will be able to verify a customer’s eligibility to make a deferred deposit transaction. The Finance and Administration Cabinet will select a vendor to build the database after soliciting proposals. The request for proposal (RFP) may be accessed at http://eprocurement.ky.gov/.
For more information on the changes brought by HB 444, visit www.kfi.ky.gov/nondepository/hb444.htm.


Kentucky Payday Loan Laws

A payday loan bill sponsored by Rep. Johnny Bell, D-Glasgow, which would require payday lenders to enter each transaction into a statewide data base passed out of the Banking and Insurance Committee on Wednesday.

Representative Bell has sponsored regulation of the payday loan industry for the last two sessions. The bill would require pay day lenders to enter transactions into a data base which would begin operation on July 1, 2010 and charge the institutions $1 per transaction to pay for the data base.

Representative Greer said the version passed out of committee Wednesday is a start, not an end. “It does get us started so we can better regulate this industry and hopefully help some of our citizens from making some bad financial decisions,” Greer said. “Many who have voted against the bill in the past have said such loans are needed by some segments of the credit market because they can’t get loans from banks. Even proponents of interest caps concede there is a place for the industry.”

The Kentucky payday loan industry represented by FISCA and CFSA have been silent on the new bill.