Legal Question in Business Law in Kentucky

State regulations and licensing

I live in Lexington, Ky and I was wanting to know what Kentucky state regulations and licensing requirements apply to the field of loan-brokering, if in fact there are any.

I recently came upon a money making opportunity while searchinig the web at the following web address: http://www.sellmoneyseminar.com/index.htm

and it stated that you don't need a high school diploma nor a college education in order to do this. Is this a true statement? The way the business works is like this. I connect borrowers with commercial or private lenders in return for an upfront fee from the borrower or a percentage of the entire loan amount on the back end.

I just don't wanna jump in head first and bust my head with legalities... So please reply very, very soon.


Asked on 5/02/06, 7:45 pm

1 Answer from Attorneys
Suzanne Van Wert Van Wert Brown

Re: State regulations and licensing

Before you jump into this, keep in mind that, if it SOUNDS too good to be true, it probably is; and many people have lost a lot of money paying for these kinds of "get rich quick" schemes. So I would first suggest that you proceed with caution.

Second, I would contact the e-mail address listed and ask questions about certification and continuing education. What, specifically, will this company offer in the way of continuing education so you could keep a license? This very well could be a front to get your credit card information and steal your identity. Be very wary of sites that require you to purchase the "meat" before they offer you the appetizer.

Finally, Kentucky requires that a broker, to be licensed, reside in the state of Kentucky and satisfy a certain number of continuing education credits per year. The requirements can be found in the Kentucky Revised Statutes, 294.250, et seq. You can look them up at www.lrc.state.ky.us. Go to "Kentucky Law" and find the "Kentucky Revised Statutes (KRS)." From there you can search "Title & Chapter" and go to Chapter 294. Start at 294.250 and read from there. If, after you have read this, you still have questions, I would highly recommend you contact an attorney who can help you.

Be aware that, if you go into this business and do not comply with state law, you can be fined anywhere from $500 to $5,000, and face criminal charges. So, if you have any questions or concerns at all, ask an attorney in your area.

Thank you.

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Answered on 5/02/06, 10:43 pm


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