How do title loans work in Kansas? | Yendo Credit Card

Are title loans legal in Kansas?

Title loans are legal in Kansas and are regulated under the Kansas Credit Code, specifically the Kansas Uniform Consumer Credit Code (KUCCC). The regulations cover aspects such as licensing, interest rates, and lending practices for title loan companies operating in Kansas.

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Here's how title loans work in Kansas and their regulations

1. Application process: To obtain a title loan in Kansas, borrowers provide their vehicle details and paperwork, such as the vehicle's title, proof of insurance, valid government-issued ID, and proof of income. The lender evaluates the vehicle's value and condition to determine the loan amount they are willing to offer.
2. Loan terms and fees: If the borrower agrees to the offered loan amount, the lender presents the loan terms, interest rates, and fees applicable to the loan. In Kansas, there is no specific cap on the interest rates for title loans, but interest rates are subject to the provisions of the KUCCC.
3. Lien on the vehicle: Once the borrower agrees to the terms and signs the loan agreement, the lender places a lien on the vehicle's title, while the borrower can continue using their vehicle during the loan term.
4. Repayment: The borrower must repay the loan, including the principal amount, interest, and any fees according to the agreed-upon repayment schedule, which can be as short as 30 days or extended over several months.
5. Loan default: If the borrower fails to repay the loan as agreed, the lender has the right to repossess the vehicle and sell it to recover the debt, which involves notifying the borrower and complying with the state's repossession laws.

To understand Kansas's specific regulations on title loans, you can refer to the Kansas Credit Code and the KUCCC, available on the Kansas Legislature website: https://kslegislature.org/li/b2021_22/statute/016_000_0000_chapter/016_006a_0000_article/

Title loans in Kansas can come with high interest rates and short repayment terms, so it's essential to explore alternative financing options before considering this type of loan. These may include personal loans, credit cards, or borrowing from friends and family. If a title loan is necessary, be sure to only borrow what you can afford to repay and carefully review the loan terms and conditions.

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The Yendo Card - The Title Loan Alternative

Yendo is the first credit card that's backed by the value of your car, so you can use your car title to get a credit line of up to $10k.

The card can provide access to credit for those who might not be able to qualify for other credit cards. It's a real credit card, powered by Mastercard, that provides credit limits from $450 - $10,000, depending on the value of your car.

So, rather than re-applying for loans, for example, you can access funds an ongoing basis and, with responsible usage like on-time payments, build your credit too.

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Features & benefits of the card

• ‍Credit limit - access up to $10k in credit
• Only pay for what you spend - it's a credit card, so you only pay for what you spend, plus interest and fees. Or, if you pay off your balance each month, you only pay for what you spend.
• App - the Yendo app lets you manage your account, wherever you are‍
• Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. Use your virtual card in addition to your physical card‍
• Cash advances - ability to do cash advances on your card if you need to access money quickly‍
• Access to revolving credit – you’ll have a revolving line of credit that opens up as you make payments‍
• Credit reporting – all your account activity will be reported to the credit bureaus, giving you the perfect opportunity to build your credit

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Additional information

• https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-titlemax-to-pay-a-10-million-penalty-for-unlawful-title-loans-and-overcharging-military-families/
• https://www.consumerfinance.gov/about-us/blog/making-ends-meet-series-consumer-use-payday-auto-title-pawn-loans/
• Title loans overview

Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.

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