FAQs

Banking

  • Q: What happens if I file a complaint against my bank?
    • A: If you submit a complaint about a Kansas state-chartered bank, this office will only act as an intermediary to facilitate communication between the consumer and the financial institution and/or the exchange of relevant documents. Once a complaint is received, the OSBC will contact the bank and request a response. After the bank responds to our request, it is reviewed, and then a follow up of what we received is provided to you.

      The Office of the State Bank Commissioner is responsible for administering the Kansas Banking Code, K.S.A. 9-501 et seq. Our office examines Kansas state-chartered banks for safety and soundness concerns. The Office of the State Bank Commissioner has no authority to legally represent a consumer. We cannot offer legal advice, adjudicate contractual disputes, or determine monetary liability between the financial institution and its customers.

  • Q: What if I want to know the condition of my bank?
    • A: Unfortunately some information generated from examining and supervising the bank is confidential and we are not permitted by statute to disclose the information. If you are interested in knowing if our office has taken any formal enforcement action against a state-chartered bank, we can disclose that information.

  • Q: I found a Certificate of Deposit (CD) as part of an Estate. What should I do?
    • A: The best thing for you to do is to contact the financial institution that issued the CD.

  • Q: Can my bank ask me for additional information when I make a large deposit or withdrawal?
    • A: Yes, the bank has information they have to report to the Internal Revenue Service and the Department of Treasury's Financial Crimes Enforcement Network on large and/or suspicious transactions. A large transaction is defined as a single transaction or a series of transactions totaling more than $10,000.

  • Q: Can my bank wait to give me access to the money that I deposit?
    • A: Yes, banks can place "holds" on checks for a variety of reasons. Banks may hold a check because the collection of the money may be in doubt or the check looks suspicious. Holds may also be placed when a large dollar amount is deposited or when funds are deposited into a new customer's account. You may wish to review the account agreement you received when you opened your account for details about your bank's funds availability policies and procedures. A bank must give you a copy of its deposit availability disclosure upon request.

  • Q: Can a bank refuse to cash my check?
    • A: There is no law that requires a bank to cash a check, even government checks. Some banks only cash checks if you have an account at that bank. Other banks will cash checks for non-customers but may charge a fee to do so.

  • Q: Can my bank require me to provide personal information to get a loan or open a deposit account?
    • A: Yes. A bank is required by law to verify and form a "reasonable belief" that it knows your true identity. You may also be asked to provide a copy of a government issued identification, such as a driver's license or passport, and other verification, which may include verifying your place of employment or other references with other financial institutions.

  • Q: What is the difference between a state and a national bank?
    • A: The main difference is whether the authority to do business as a bank was granted by the state government or the federal government. Whenever a new bank is organized, the owners apply for either a state or national (federal) bank charter. Both types of banks offer FDIC insured deposits and both are regulated in much the same manner. The important difference for bank customers and other consumers is where they should go for regulatory assistance. To see if your bank is a state chartered bank, please visit our OSBC Online Institution Lookup.

Consumer & Mortgage Lending

  • Q: How can I tell if a lender is licensed in Kansas?
  • Q: How can I tell if a Mortgage Loan Originator is licensed in Kansas?
  • Q: What if I got a loan from a company I do not see on the List of Approved Lenders?
    • A: First make sure the company is not on the list of entities We Do Not Regulate . If it is not, and if you are a Kansas Consumer, complete and submit the Consumer Assistance Form and we will investigate. Please remember to include copies of all available supporting documents.

  • Q: What is APR?
    • A: APR is the Annual Percentage Rate. It represents the true cost of borrowing, expressed as a percentage, and will take into consideration the total finance charges paid over the life of the loan, not just the interest rate.
  • Q: How can I figure APR?
    • A: The formula to figure APR is:
      Finance Charge X 365 / Amount Financed / Number of Loan Days X 100 = APR
  • Q: Who can help with questions or problems with my Credit Card?
    • A: Most Credit Cards are issued by National Banks who are regulated by the Office of the Comptroller of Currency. You can find answers to common questions and contact information here.

Payday and Other Small Loans

  • Q: What is a Payday Loan?
    • A: A Payday Loan is a consumer loan transaction with the following qualities:
      -The loan amount is equal to or less than $500
      -The payment term is between 7 and 30 days
      -The lender anticipates a single repayment.
  • Q: How much can a licensed lender charge for a Payday Loan?
    • A licensed Supervised Lender can charge no more than 15% of the amount of the loan. Remember that depending upon the term and amount of the loan, 15% of the amount financed can calculate to an APR of much higher. For example, the APR for a $100 payday loan, with a finance charge of 15%, and a term of 14 days, is 391.07%.

      $15.00 X 365 / $100.00 / 14 X 100 = 391%
      Finance Charge X 365 / Amount Financed / Number of loan days X 100 = APR

  • Q: What additional fees can a payday lender charge?
    • A: A licensed payday lender can charge one NSF (non-sufficient funds) fee and 3% per month of the outstanding loan amount. For example – after the maturity date of a $300 payday loan, the lender can charge an additional $9 per month.

  • Q: What is a Title Loan?
    • A: A Title Loan is a consumer loan in which the borrower allows the lender to place a lien on their vehicle title in exchange for a loan amount. When the loan is repaid, the lien is removed. However, if the borrower defaults, the lender may repossess the vehicle and sell it to repay the outstanding debt. In Kansas, a Title Loan is written as an Open End Line of Credit.

  • Q: How much can a licensed lender charge for an Open End Line of Credit?
    • A: A licensed Supervised Lender may charge a finance charge at any rate agreed to by the parties for an Open End Line of Credit.

  • Q: My lender says they do not have to be licensed because they are affiliated with a Native American tribe. Is that correct?
    • A: The Office of the State Bank Commissioner does not have jurisdiction over entities that are wholly owned by a Native American tribe. However, not all companies that claim to be tribal entities are wholly owned by the tribe. Please complete and submit the Consumer Assistance Form and we will investigate. Remember to include copies of all available supporting documents.

Credit Service Organizations

  • Q: What is a Credit Service Organization
    • A: A Credit Service Organization is willing to engage in one, or all, of the following debt management services:
      -Receive funds from a consumer for the purpose of distributing the funds among creditors
      -Improve a customer's credit record, history, or rating
      -Negotiate to defer or reduce a consumer's obligations
  • Q: How can I tell if a Credit Service Organization is licensed in Kansas?
  • Q: What fees can a licensed Credit Service Organization charge a consumer?
    • A: A licensed CSO may only charge the following:
      -A one-time $50 consultation fee
      -The lesser of, a $20 total monthly maintenance fee or $5 per month for each creditor listed in the debt management services agreement.