What a title loan costs — before Kansas’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Kansas
- Rate cap
- Under K.S.A. 16a-2-401, open-end consumer loans may carry a finance charge at any rate agreed to by the parties (no cap). Closed-end consumer loans are capped at 36%/yr, but title loans are written as open-end to avoid it.
- Key law
- Kansas Uniform Consumer Credit Code (KUCCC), K.S.A. Chapter 16a; finance charge at K.S.A. 16a-2-401.
- Enforcement
- The Office of the State Bank Commissioner (OSBC), Consumer and Mortgage Lending Division, licenses and supervises title/supervised lenders.
K.S.A. 16a-2-401 lets an open-end consumer loan carry a finance charge at any rate agreed to by the parties, with no rate cap — the mechanism title lenders use.
What it means for a Kansas borrower
Kansas allows car-title loans at high interest because lenders write them as open-end credit, which has no statutory rate ceiling. Borrowers can face very high effective APRs and risk losing the vehicle on default. The lender must still be licensed by the OSBC.
Before you borrow in Kansas
- Check whether the lender is licensed in Kansas — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Kansas attorney general and the CFPB.
- Ask whether the balance is even collectable under Kansas law before you pay a collector.
Cheaper first — try these before a title loan in Kansas
Title Loans and tribal lenders in Kansas
Many online lenders that market title loans to Kansas residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Kansas residents and how state law applies to them, see the Kansas tribal-lending page.
Tribal loans in Kansas →Frequently asked questions
Are title loans legal in Kansas?
In Kansas, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Kansas?
Under K.S.A. 16a-2-401, open-end consumer loans may carry a finance charge at any rate agreed to by the parties (no cap). Closed-end consumer loans are capped at 36%/yr, but title loans are written as open-end to avoid it.
What can I do about a title loan I already have in Kansas?
Kansas allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Kansas attorney general or the CFPB if the lender breaks the rules.