Part 5 CONSUMER CREDIT TRANSACTIONS; OTHER CHARGES AND MODIFICATIONS
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-501.(UCCC) Additional charges.
(1) In addition to the finance charge permitted by the parts of this article on
maximum finance charges for consumer credit sales and consumer loans (parts 2
and 4), a creditor may contract for and receive the following additional
charges in connection with a consumer credit transaction:
(a) Official fees and taxes;
(b) charges for insurance as described in subsection (2);
(c) delinquency charges permitted under K.S.A. 16a-2-502, and
amendments thereto, and service charges for insufficient checks permitted under
paragraph (e);
(d) charges for other benefits, including insurance, conferred on the
consumer, if the benefits are of value to the consumer and if the charges are
reasonable in relation to the benefits, are of a type which is not for
credit, and are excluded as permissible additional charges from the finance
charge by rules and regulations adopted by the administrator;
(e) a service charge for an insufficient check as defined and authorized by
this subsection:
(i) For the purposes of this subsection, "insufficient check" means any
check, order or draft drawn on any bank, credit union, savings and loan
association, or other financial institution for the payment of money and
delivered in payment, in whole or in part, of preexisting indebtedness of
the drawer or maker, which is refused payment by the drawee because the
drawer or maker does not have sufficient funds in or credits with the
drawee to pay the amount of the check, order or draft upon presentation,
provided that any check, order or draft which is postdated or delivered to
a payee who has knowledge at the time of delivery that the drawer or maker
did not have sufficient funds in or credits with the drawee to
pay the amount of the check, draft or order upon presentation shall not be
deemed an insufficient check.
(ii) "Written notice" shall be presumed to have been given a drawer or maker
of an insufficient check when notice is sent by first class mail addressed to
the person to be given notice of such person's address as it appears on the
insufficient check or to such person's last known address or notice provided on
a regular monthly statement provides clear notice of the insufficient check
charge being assessed.
(iii) When an insufficient check has been given to a payee, the payee may
charge and collect a $10 insufficient check service charge from the drawer or
maker, subject to limitations contained in this subsection or, if a larger
amount is provided within the contract, the larger amount, if the payee has
given the drawer or maker oral or written notice of demand that the amount of
the insufficient check plus the insufficient check service charge be paid to
the payee within 14 days from the giving of notice. In no event shall the
amount of such insufficient check service charge exceed $30.
(iv) If the drawer or maker of an insufficient check does not pay the amount
of the insufficient check plus the insufficient check service charge provided
for in subsection (iii) to the payee within 14 days from the giving of notice
as provided in subsection (iii), the payee may add the insufficient check
service charge to the outstanding balance of the preexisting indebtedness of
the drawer or maker to draw interest at the contract rate applicable to the
preexisting indebtedness.
(v) Notwithstanding the provisions of subparagraph (iii), if an
insufficient check has been given to a creditor under a lender credit card, the
creditor may charge a service charge for the insufficient check in an amount
not to exceed the amount agreed to by the drawer or maker.
(2) An additional charge may be made for insurance written in connection
with the transaction, including vendor's single interest insurance with
respect to which the insurer has no right of subrogation against the
consumer but excluding other insurance protecting the creditor against the
consumer's default or other credit loss:
(a) With respect to insurance against loss of or damage to property, or
against liability, if the creditor furnishes a clear and specific statement
in writing to the consumer setting forth the cost of the insurance if
obtained from or through the creditor and stating that the consumer may
choose the person through whom the insurance is to be obtained; and
(b) with respect to consumer credit insurance providing life, accident
and health, or loss of employment coverage, if the insurance coverage is
not a factor in the approval by the creditor of the extension of credit, and
this fact is clearly disclosed in writing to the consumer, and if, in order to
obtain the insurance in connection with the extension of credit, the consumer
gives specific affirmative written indication of the consumer's desire to do so
after written disclosure to the consumer of the cost thereof.
(3) With respect to a consumer loan or a consumer credit sale in either
case pursuant to open end credit, a creditor may charge the following fees in
an amount not to exceed that agreed to by the consumer:
(a) Fees on a monthly or annual basis;
(b) over-limit fees; and
(c) cash advance fees. The fees permitted under this subsection are in
addition to any finance charges, additional charges or other charges permitted
by the uniform consumer credit code.
(4) A charge not exceeding $5 per payment, if the borrower makes a single
installment payment by authorizing a creditor, verbally or in writing, to
write a check or process a payment through use of the automated clearing house
procedures on the borrower's checking account, subject to the following
limitations:
(A) No charge shall be assessed if the creditor also collects a delinquency
fee on the same installment; and
(B) no charge shall be assessed where the consumer has agreed in writing
with the creditor to make all scheduled payments through the use of the
automated clearing house procedures.
History: L. 1973, ch. 85, § 29;
L. 1987, ch. 80, § 1;
L. 1988, ch. 88, § 1;
L. 1988, ch. 89, § 1;
L. 1988, ch. 87, § 3;
L. 1990, ch. 209, § 2;
L. 1991, ch. 72, § 1;
L. 1996, ch. 174, § 1;
L. 1999, ch. 107, § 18;
L. 2004, ch. 32, § 1; July 1.
Part 5 CONSUMER CREDIT TRANSACTIONS; OTHER CHARGES AND MODIFICATIONS
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-501.(UCCC) Additional charges.
(1) In addition to the finance charge permitted by the parts of this article on
maximum finance charges for consumer credit sales and consumer loans (parts 2
and 4), a creditor may contract for and receive the following additional
charges in connection with a consumer credit transaction:
(a) Official fees and taxes;
(b) charges for insurance as described in subsection (2);
(c) delinquency charges permitted under K.S.A. 16a-2-502, and
amendments thereto, and service charges for insufficient checks permitted under
paragraph (e);
(d) charges for other benefits, including insurance, conferred on the
consumer, if the benefits are of value to the consumer and if the charges are
reasonable in relation to the benefits, are of a type which is not for
credit, and are excluded as permissible additional charges from the finance
charge by rules and regulations adopted by the administrator;
(e) a service charge for an insufficient check as defined and authorized by
this subsection:
(i) For the purposes of this subsection, "insufficient check" means any
check, order or draft drawn on any bank, credit union, savings and loan
association, or other financial institution for the payment of money and
delivered in payment, in whole or in part, of preexisting indebtedness of
the drawer or maker, which is refused payment by the drawee because the
drawer or maker does not have sufficient funds in or credits with the
drawee to pay the amount of the check, order or draft upon presentation,
provided that any check, order or draft which is postdated or delivered to
a payee who has knowledge at the time of delivery that the drawer or maker
did not have sufficient funds in or credits with the drawee to
pay the amount of the check, draft or order upon presentation shall not be
deemed an insufficient check.
(ii) "Written notice" shall be presumed to have been given a drawer or maker
of an insufficient check when notice is sent by first class mail addressed to
the person to be given notice of such person's address as it appears on the
insufficient check or to such person's last known address or notice provided on
a regular monthly statement provides clear notice of the insufficient check
charge being assessed.
(iii) When an insufficient check has been given to a payee, the payee may
charge and collect a $10 insufficient check service charge from the drawer or
maker, subject to limitations contained in this subsection or, if a larger
amount is provided within the contract, the larger amount, if the payee has
given the drawer or maker oral or written notice of demand that the amount of
the insufficient check plus the insufficient check service charge be paid to
the payee within 14 days from the giving of notice. In no event shall the
amount of such insufficient check service charge exceed $30.
(iv) If the drawer or maker of an insufficient check does not pay the amount
of the insufficient check plus the insufficient check service charge provided
for in subsection (iii) to the payee within 14 days from the giving of notice
as provided in subsection (iii), the payee may add the insufficient check
service charge to the outstanding balance of the preexisting indebtedness of
the drawer or maker to draw interest at the contract rate applicable to the
preexisting indebtedness.
(v) Notwithstanding the provisions of subparagraph (iii), if an
insufficient check has been given to a creditor under a lender credit card, the
creditor may charge a service charge for the insufficient check in an amount
not to exceed the amount agreed to by the drawer or maker.
(2) An additional charge may be made for insurance written in connection
with the transaction, including vendor's single interest insurance with
respect to which the insurer has no right of subrogation against the
consumer but excluding other insurance protecting the creditor against the
consumer's default or other credit loss:
(a) With respect to insurance against loss of or damage to property, or
against liability, if the creditor furnishes a clear and specific statement
in writing to the consumer setting forth the cost of the insurance if
obtained from or through the creditor and stating that the consumer may
choose the person through whom the insurance is to be obtained; and
(b) with respect to consumer credit insurance providing life, accident
and health, or loss of employment coverage, if the insurance coverage is
not a factor in the approval by the creditor of the extension of credit, and
this fact is clearly disclosed in writing to the consumer, and if, in order to
obtain the insurance in connection with the extension of credit, the consumer
gives specific affirmative written indication of the consumer's desire to do so
after written disclosure to the consumer of the cost thereof.
(3) With respect to a consumer loan or a consumer credit sale in either
case pursuant to open end credit, a creditor may charge the following fees in
an amount not to exceed that agreed to by the consumer:
(a) Fees on a monthly or annual basis;
(b) over-limit fees; and
(c) cash advance fees. The fees permitted under this subsection are in
addition to any finance charges, additional charges or other charges permitted
by the uniform consumer credit code.
(4) A charge not exceeding $5 per payment, if the borrower makes a single
installment payment by authorizing a creditor, verbally or in writing, to
write a check or process a payment through use of the automated clearing house
procedures on the borrower's checking account, subject to the following
limitations:
(A) No charge shall be assessed if the creditor also collects a delinquency
fee on the same installment; and
(B) no charge shall be assessed where the consumer has agreed in writing
with the creditor to make all scheduled payments through the use of the
automated clearing house procedures.
History: L. 1973, ch. 85, § 29;
L. 1987, ch. 80, § 1;
L. 1988, ch. 88, § 1;
L. 1988, ch. 89, § 1;
L. 1988, ch. 87, § 3;
L. 1990, ch. 209, § 2;
L. 1991, ch. 72, § 1;
L. 1996, ch. 174, § 1;
L. 1999, ch. 107, § 18;
L. 2004, ch. 32, § 1; July 1.
Part 5 CONSUMER CREDIT TRANSACTIONS; OTHER CHARGES AND MODIFICATIONS
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-501.(UCCC) Additional charges.
(1) In addition to the finance charge permitted by the parts of this article on
maximum finance charges for consumer credit sales and consumer loans (parts 2
and 4), a creditor may contract for and receive the following additional
charges in connection with a consumer credit transaction:
(a) Official fees and taxes;
(b) charges for insurance as described in subsection (2);
(c) delinquency charges permitted under K.S.A. 16a-2-502, and
amendments thereto, and service charges for insufficient checks permitted under
paragraph (e);
(d) charges for other benefits, including insurance, conferred on the
consumer, if the benefits are of value to the consumer and if the charges are
reasonable in relation to the benefits, are of a type which is not for
credit, and are excluded as permissible additional charges from the finance
charge by rules and regulations adopted by the administrator;
(e) a service charge for an insufficient check as defined and authorized by
this subsection:
(i) For the purposes of this subsection, "insufficient check" means any
check, order or draft drawn on any bank, credit union, savings and loan
association, or other financial institution for the payment of money and
delivered in payment, in whole or in part, of preexisting indebtedness of
the drawer or maker, which is refused payment by the drawee because the
drawer or maker does not have sufficient funds in or credits with the
drawee to pay the amount of the check, order or draft upon presentation,
provided that any check, order or draft which is postdated or delivered to
a payee who has knowledge at the time of delivery that the drawer or maker
did not have sufficient funds in or credits with the drawee to
pay the amount of the check, draft or order upon presentation shall not be
deemed an insufficient check.
(ii) "Written notice" shall be presumed to have been given a drawer or maker
of an insufficient check when notice is sent by first class mail addressed to
the person to be given notice of such person's address as it appears on the
insufficient check or to such person's last known address or notice provided on
a regular monthly statement provides clear notice of the insufficient check
charge being assessed.
(iii) When an insufficient check has been given to a payee, the payee may
charge and collect a $10 insufficient check service charge from the drawer or
maker, subject to limitations contained in this subsection or, if a larger
amount is provided within the contract, the larger amount, if the payee has
given the drawer or maker oral or written notice of demand that the amount of
the insufficient check plus the insufficient check service charge be paid to
the payee within 14 days from the giving of notice. In no event shall the
amount of such insufficient check service charge exceed $30.
(iv) If the drawer or maker of an insufficient check does not pay the amount
of the insufficient check plus the insufficient check service charge provided
for in subsection (iii) to the payee within 14 days from the giving of notice
as provided in subsection (iii), the payee may add the insufficient check
service charge to the outstanding balance of the preexisting indebtedness of
the drawer or maker to draw interest at the contract rate applicable to the
preexisting indebtedness.
(v) Notwithstanding the provisions of subparagraph (iii), if an
insufficient check has been given to a creditor under a lender credit card, the
creditor may charge a service charge for the insufficient check in an amount
not to exceed the amount agreed to by the drawer or maker.
(2) An additional charge may be made for insurance written in connection
with the transaction, including vendor's single interest insurance with
respect to which the insurer has no right of subrogation against the
consumer but excluding other insurance protecting the creditor against the
consumer's default or other credit loss:
(a) With respect to insurance against loss of or damage to property, or
against liability, if the creditor furnishes a clear and specific statement
in writing to the consumer setting forth the cost of the insurance if
obtained from or through the creditor and stating that the consumer may
choose the person through whom the insurance is to be obtained; and
(b) with respect to consumer credit insurance providing life, accident
and health, or loss of employment coverage, if the insurance coverage is
not a factor in the approval by the creditor of the extension of credit, and
this fact is clearly disclosed in writing to the consumer, and if, in order to
obtain the insurance in connection with the extension of credit, the consumer
gives specific affirmative written indication of the consumer's desire to do so
after written disclosure to the consumer of the cost thereof.
(3) With respect to a consumer loan or a consumer credit sale in either
case pursuant to open end credit, a creditor may charge the following fees in
an amount not to exceed that agreed to by the consumer:
(a) Fees on a monthly or annual basis;
(b) over-limit fees; and
(c) cash advance fees. The fees permitted under this subsection are in
addition to any finance charges, additional charges or other charges permitted
by the uniform consumer credit code.
(4) A charge not exceeding $5 per payment, if the borrower makes a single
installment payment by authorizing a creditor, verbally or in writing, to
write a check or process a payment through use of the automated clearing house
procedures on the borrower's checking account, subject to the following
limitations:
(A) No charge shall be assessed if the creditor also collects a delinquency
fee on the same installment; and
(B) no charge shall be assessed where the consumer has agreed in writing
with the creditor to make all scheduled payments through the use of the
automated clearing house procedures.
History: L. 1973, ch. 85, § 29;
L. 1987, ch. 80, § 1;
L. 1988, ch. 88, § 1;
L. 1988, ch. 89, § 1;
L. 1988, ch. 87, § 3;
L. 1990, ch. 209, § 2;
L. 1991, ch. 72, § 1;
L. 1996, ch. 174, § 1;
L. 1999, ch. 107, § 18;
L. 2004, ch. 32, § 1; July 1.