QUIK PAYDAY v. STORK
N/AOUTCOME: Regulating Consumer Lending Conducted on Internet
The case originated because Quik Payday made payday loans totaling over one million dollars to Kansas residents over the course of several years. The loans ranged from $100 to $500 and they were all m ... ade via the Internet. Quik Payday made these loans without obtaining the proper license from the State of Kansas. Kansas ordered Quik Payday to cease operations in the state, fined it $5 million, and ordered it to repay all fees and interest to customers in Kansas. Quik Payday sued, contending Kansas could not regulate interstate banking, as it violated the Commerce Clause. The Tenth Circuit affirmed that Kansas did not violate the Commerce Clause and could regulate Internet consumer lending under the KUCCC.
