Kentucky amends consumer loan company requirements

State Issues State Legislation Licensing Consumer Lending

On March 26, the Kentucky governor signed HB 285, which amends licensing procedures and requirements for consumer loan companies. Specifically, HB 285, among other things:(i) increases application fees; (ii) establishes financial requirements for applicants and licensees; (iii) amends the process for approving applications and appealing denials; (iv) restricts licensing eligibility for individuals who previously had a license denied or revoked; and (v) authorizes use of the State Regulatory Registry by the state’s Department of Financial Institutions. HB 285 also establishes when the state commissioner may take adverse action and permits the commissioner to seek temporary or permanent relief against persons in violation of the law. The amendments take effect 90 days after the official end of the session.