AN ACT relating to deferred deposit transactions.

Amend KRS 286.9-100 to limit interest on deferred deposit transactions to an annual percentage rate of 36 percent; apply to transactions entered on or after the effective date of the Act.

Consumer Affairs Interest and Usury Loans and Credit Banks and Financial Institutions

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This bill would have capped the interest rate on deferred deposit transactions, commonly known as payday loans, at 36 percent annual percentage rate. It would have applied to new transactions made after the bill took effect. The bill did not pass. Who it may affect: Kentuckians who use payday loans or similar short-term lending services, as well as businesses that offer deferred deposit transactions.

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