Licensed loan providers in Delaware have to cap short-term installment loans at $1,000. They are loans of lower than 60 times being “not guaranteed by name to an automobile.” But, the state doesn’t control APRs. Finalized prices are determined and negotiable by the lending company together with debtor.
In 2012, Delaware’s state legislature passed home Bill 289, which increased the limitation on short-term loans from $500 to $1,000. The bill also restricts borrowers from taking out more than 5 loans over a 12-month period to protect consumers from falling into a cycle of debt.
Ahead of issuance, licensed lenders will also be expected to search Delaware’s Consumer Loan Database to evaluate:
- What number of short-term loans a debtor presently has available
- Whether a debtor is qualified to receive the loan at issue
- Other information that is relevant to comply with laws