A Guide to Payday Loans and the Law in Delaware

The Law in Delaware

Cash advances (payday loans) from both store front and online lenders are legal in the state of Delaware as laid down in Delaware Code Title 5 Chapter 22 § 2227.

Options for residents

For those keen to pursue cash advances from storefront lenders within Delaware, visiting yell.com or searching via Google will help flag some options. Reputable, well-established and pre-screened online lenders can be applied to and compared here, via the introduction and application platform

The Lending Rulesat CashAvanceOnline.net.

The following lending rules must be compiled with:

• Maximum loan amount: $500 per loan, with $1,000 maximum permitted at one time per borrower.
• Minimum length of loan: 60 days
• Fees and finance charges: No limit
• Loan Agreement Formalities: A signature and a thumb print are required from the borrower in order to confirm identity, prevent fraud and secure the loan whether the loan is obtained in person, online or via telephone.

 

The Debt Limits

In order to contain the amount of outstanding loans a consumer can have, the following debt limits must be adhered to in Delaware for cash advances:

• Maximum loan amount from a single lender: A total of $1,000 can be borrowed by each single individual at one time. No additional loans are allowed until the previous ones are repaid.
• Maximum number of payday loans permitted per year per borrower: Five
• Maximum number of rollover loans allowed: Four. If a borrower is unable to repay their payday loan on the agreed upon date, they are allowed to roll this over four times.
• Repayment plan availability: Yes, but not a requirement.

The Collection Restrictions

In addition, there are certain additional collection restrictions mandated against lenders in the instance of a borrower’s repayment bouncing or their failure to repay part, or all, of their loan:

• Criminal proceedings: Lenders cannot initiate criminal proceedings against borrower in the state of Delaware.

Regulatory information

In the instance that either a store front or online lenders offers a payday loan to an Delaware resident in contravention of the above rules and parameters, consumers are advised to contact the Delaware Office of the State Bank Commissioner (OSBC) to protect themselves and exercise their statutory rights:

• Name of Regulator: Office of the State Bank Commissioner (OSBC)
• Address: 555 East Loockerman Street Dover, DE  19901
• Phone: (302) 739-4235 or (302) 577-6722 (from New Castle County)
• Fax: (302) 739-3609
• Regulatory contact personnel: Dawn Hollinger
• Email address: Dawn.Hollinger@state.de.us
• Link to complaint form: File a complaint here.
• Website: http://banking.delaware.gov/

Be safe

Ensure that you only accept a payday loan from a lender that conducts itself closely in accordance with the laws of the state in which you reside.

Cash advances can be a vital way to borrow extra money when you find yourself short and in an emergency. We can help maximize your searches by connecting you to top Delaware payday lenders online, via our free application and comparison service.

Click here to get started!