Section 16a-2-501 - [Effective 1/1/2025] (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 , 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) late fees permitted under K.S.A. 16a-2-502, and amendments thereto, and service charges for insufficient payment methods 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 payment method, not to exceed $30, subject to the limitations contained in this subsection: (i) For the purposes of this subsection, "insufficient payment method" means any instrument as defined in K.S.A. 84-3-104, and amendments thereto, drawn on any financial institution for the payment of money 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 instrument upon presentation. Any payment instrument that 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 payment instrument.(ii) "Notice" shall be given to a consumer providing an insufficient payment method by one of the following methods: (1) First class mail addressed to the consumer's last known address; or(2) a clear notice of the insufficient payment method charge on the consumer's regular monthly statement.(iii) If the consumer does not pay the amount of the insufficient payment plus the service charge to the payee within 14 days from the giving of notice , the payee may add the service charge to the outstanding balance of the preexisting indebtedness of the consumer to draw interest at the contract rate applicable to the preexisting indebtedness.
(f) Notwithstanding the provisions of subsection (e), if an insufficient payment method has been given to a creditor under a lender credit card, the creditor may charge a service charge for the insufficient payment method in an amount not to exceed the amount agreed to by the drawer or maker.(2) Except as otherwise provided for in this act, a creditor may agree to provide insurance and may contract for and receive an additional charge 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; (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;(c) a creditor need not make a separate charge for insurance provided or required by such creditor. This act does not authorize the issuance of any insurance prohibited under any statute, or rule thereunder, governing the business of insurance; and(d) the excess amount of a charge for insurance provided for in agreements in violation of this act is an excess charge for the purposes of this act.(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;(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 make a payment through electronic methods subject to the following limitations: (a) No charge shall be assessed if the creditor also collects a late 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 electronic methods.Amended by L. 2024, ch. 6,§ 53, eff. 1/1/2025.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.This section is set out more than once due to postponed, multiple, or conflicting amendments.