The state of Delaware does allow payday loans to be granted. These loans are permitted according to licensing law and the Small Loan Act. The maximum amount a borrower can take out at a time is $500. While most states only allow one month or 31 days for a borrower to pay back a payday loan. Delaware regulations allow for a 60 day repayment period. Lenders are also required to allow borrowers to renew, or rollover, their loans as many as four times. Typically this limit is much lower. Delaware is also unique in that in lieu of a signature to certify a loan, lenders must get the thumbprint of a borrower (in order to reduce fraud).
According to recent updates to payday loan regulations
in Delaware, borrowers can take out a maximum of 5 payday loans of $1000 or less in a one year time frame.
Interest Rate Limits
Delaware does not place any limits on the interest rate or amount of interest that payday loan companies can charge. Lenders can also choose how to calculate the interest.
Recently in Delaware, updates have been made to small-loan legislation. In addition to limiting the number of loans that a borrower can take out per year, it creates a state database in order to track this.
Small Loan Regulation
The Delaware Office of the State Bank Commissioner regulates small loans in Delaware. Their office is located in Dover, DE.
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Category: Payday loans