Payday loans in Kentucky: the rules and your way out

Kentucky's rules, line by line

Largest loan

$600 in total proceeds from all open deferred deposit transactions, for transactions entered on or after July 15, 2026 (KRS 286.9-100(9)(b)). The Commissioner adjusts it by CPI-U each July 1, rounded up to $10, never above $850. Before July 15, 2026 the cap was $500.

Shortest term

No minimum term is stated. The service fee 'shall be for a period of at least fourteen (14) days' (KRS 286.9-100(1)(b)).

Longest term

60 days. A licensee may not agree to hold a deferred deposit transaction for more than 60 days (KRS 286.9-100(12)).

Fee or rate cap

A service fee of no more than $15 per $100 of the face amount of the deferred deposit check, prorated (KRS 286.9-100(1)(b)). A database fee of $3 per transaction may be charged to the customer (KRS 286.9-140(2)).

Renewals and rollovers

Prohibited. A licensee or affiliate may not, for a fee, renew, roll over or otherwise consolidate a deferred deposit transaction (KRS 286.9-100(14)).

Loans at once

2. A licensee may not have more than 2 deferred deposit transactions from one customer at a time and may not enter a transaction with a customer who has 2 open transactions (KRS 286.9-100(9)(a), (18)).

Payment plan if you cannot pay

No statutory extended payment plan was found in KRS 286.9-100 or 286.9-140.

State loan database

Yes. A common real-time database of deferred deposit transactions run by the Commissioner or a contracted third party; licensees must check it before each transaction (KRS 286.9-140; KRS 286.9-100(19)). Its regulation is 808 KAR 9:010. The statute does not name the operator.

Limits on collection

A borrower who enters a deferred deposit transaction cannot be convicted under KRS 514.040 (theft by deception / cold checks), and the licensee may not prosecute or threaten to prosecute under it. Each location must post a sign saying so (KRS 286.9-100(15)-(17)). For returned checks, the licensee may collect only the check collection charges made by a financial institution, and only if disclosed in advance (KRS 286.9-102(3)). No security or guarantor may be required (286.9-100(8)).

Other rights

Written or electronic agreement, with a copy to the customer (KRS 286.9-100(13)). Fees must be disclosed in writing beforehand (100(1)(a)). TILA disclosures are required (286.9-102(1)). The customer may ask the database provider directly why they were found ineligible (286.9-140(9)(b)). No new deferred deposit licenses may be issued (KRS 286.9-071).

If you are behind on a payday loan in Kentucky

1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

• Check whether a lender is licensed in Kentucky
• File a complaint with the Kentucky Department of Financial Institutions (DFI)
• File a complaint with the Consumer Financial Protection Bureau

Sources

• KRS 286.9-100, Procedures to be followed by licensees (eff. July 15, 2026), read 2026-10-24
• KRS 286.9-140, Database of outstanding deferred deposit transactions (eff. July 15, 2026), read 2026-10-24
• KRS 286.9-102, Disclosures, fees and service charges, read 2026-10-24
• KRS 286.9-071, Ban on issuance of additional deferred deposit licenses, read 2026-10-24
• 2024 Ky. Acts ch. 38 (HB 495), read 2026-10-24
• Kentucky DFI home page (Search for a Licensee, File a Complaint), read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.