Kansas

The relevant statute is the Kansas Uniform Commercial Credit Code, Kan. Stat. Ann. §§16a-1-101 et seq. ("KS-UCCC").

A. Actions creditor may take: KS-UCCC §16a-2-506(1) - If buyer covenants to insure the vehicle, and creditor, pursuant to the contract, pays for performance of buyer's covenants, then creditor may add the amount of the premium paid on buyer's behalf to the debt.

B. Notices required:

(1) KS-UCCC §16a-2-506(1) - Creditor must give buyer notification and a reasonable opportunity to perform prior to creditor paying for performance of the covenant.

(2) KS-UCCC §16a-2-506(1) - Creditor, within a reasonable time after advancing the premium, must state to buyer in writing

(i) the amount of the sums advanced for the premium,

(ii) any charges with respect to that amount,

(iii) a revised payment schedule, and

(iv) a brief description of the insurance, including the type and amount of coverage.

C. Charges permitted: KS-UCCC §16a-2-506(1) – By implication, the notice provision may allow additional charges.

D. Finance charge allowed on creditor's payment: Yes. KS-UCCC §16a-2-506(2) - The rate charged may not exceed the rate required to be disclosed under the Truth in Lending Act.

Click here to view relevant Kansas Code and Regulations.