{"id":373463,"date":"2016-03-31T21:35:19","date_gmt":"2016-04-01T02:35:19","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/kansas-law\/kansas-interest-rates-laws.html"},"modified":"2016-06-20T19:48:47","modified_gmt":"2016-06-21T00:48:47","slug":"kansas-interest-rates-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/kansas-law\/kansas-interest-rates-laws.html","title":{"rendered":"Kansas Interest Rates Laws"},"content":{"rendered":"\n
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Kansas Interest Rates Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Most of us need to take a loan out at some point in our lives to make a big purchase, from a car to college tuition<\/a>, as well as for a home or a farm. Whatever the reasons behind our loans, we need to be aware of the interest rates that apply to the various debts in our lives.<\/p>\n

Credit cards often entice consumers with low 0% interest advertisements, which hide the real interest rate in small print and complicated legalese words. If you find yourself with a debt problem, you may also want to review budgeting options<\/a> to rein in debt or read articles about bankruptcy<\/a> options.<\/p>\n

The chart below lists the legal interest rates and interest rate laws<\/a> in Kansas.<\/p>\n\n
Code Sections<\/b><\/td>\nKansas Statutes Chapter 16, Article 2: Interest and Charges<\/a><\/td>\n<\/tr>
Legal Maximum Rate of Interest<\/b><\/td>\nThe maximum legal rate of interest<\/a> is 10%, when no other rate is agreed upon. The maximum rate at which parties can contract, which is higher, is 15% per year<\/a>, unless otherwise specifically authorized to be higher by law.<\/td>\n<\/tr>
Interest Rates on Judgments<\/b><\/td>\nKansas law states that the interest rate on judgments<\/a> will be 4% above the federal discount rate (the charge on loans to banks by the Federal Reserve Bank) as of the July 1st preceding the judgment. The Kansas Secretary of State publishes the judgment rate<\/a> on its website. For July 1, 2014 to June 30, 2015 the rate was 4.75%, as it had been for the past four years since July 1, 2010.
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\nNote that when the judgment is based on a contract, then the contract rate controls<\/a>.<\/td>\n<\/tr>
Exceptions<\/b><\/td>\nSeveral different categories of loans aren\u2019t limited by the contracted legal maximum interest rate of 15%, specifically:
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Penalty for Unlawful Interest Rate<\/b><\/td>\nThe penalty for usury or an unlawful interest rate is to forfeit all interest<\/a> and have the amount of interest contracted for in excess of the legal amount deducted from the principal and lawful interest due. A defendant will also have to pay the borrower\u2019s reasonable attorney fees.<\/td>\n<\/tr><\/tbody><\/table>\n

If you think a loan you\u2019ve taken out may be charging you an unlawful amount of interest, you should speak to speak to an experienced Kansas consumer protection lawyer<\/a> to learn about your legal options.<\/p>\n

Note:<\/i><\/b> State laws change constantly. Please contact a banking & finance lawyer<\/a> or conduct your own legal research to verify these interest rate laws.<\/i><\/p>\n

Research the Law<\/h2>\n