Kan. U.C.C. Stat. Ann. §16a-2-502 limits the amount of late charges that may be assessed in connection with a consumer credit transaction (which is subject to the provisions of Kansas’ Uniform Consumer Credit Code [UCCC]) to 5% of the unpaid amount of a delinquent installment, with a maximum charge of $25.
In order to determine whether a loan is subject to the UCCC, users of our ConformX software must select “yes” or “no” to the “Subject to Kansas Uniform Consumer Credit Code” selection in the “Defaults” screen. Depending upon the selection made, the appropriate late charge restriction will be applied to the loan and be disclosed in all relevant loan documents (e.g. the Truth-in-Lending Disclosure, security instrument, and note).
We have used this prompt in all Kansas Closing screens. However, to ensure that the appropriate restrictions are disclosed in the Truth-in-Lending Disclosure, we will now require users to use this selection in Initial and TILA Redisclosure screens as well.
This change will take effect February 25, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584