Skip-a-Payment (Kansas)

Last Reviewed: August 2023

There is no Kansas statute explicitly granting Kansas state-chartered credit unions the authority to offer skip-a-pay programs. In fact, the Kansas Uniform Consumer Credit Code (“UCCC”) does not permit a lender to charge a fee to the consumer for the privilege of skipping a payment. However, a Kansas state-chartered credit union can request written permission from the Kansas Department of Credit Unions (KDCU) to charge a skip-a-payment fee.

The KDCU Credit Union Staff FAQs state:

A credit union must ask for permission in writing to apply a skip-a-payment fee granted by the KDCU’s Administrator. K.S.A. 16a-2-503 does not allow a skip-a-payment fee as of 1994. However, a current Kansas law, in effect in 2005 (a Missouri parity law), does allow a credit union to ask in writing to the KDCU Administrator for permission to charge a fee for this service.” Therefore, Kansas state-chartered credit unions are required to obtain special written permission from the KDCU Administrator to charge a skip-a-payment fee.