Delaware

Currently there are no laws in Delaware that regulate payday lending. There is however, a resolution that’s under way that will limit the term restrictions lenders can put on their loans. Under the new law, payday lenders will be required to allow their customers at least 60 days to repay the loan. The loan must be under $500 for this law to be in effect.

The Bill also sates that lenders cannot make loans for $3000 or less if the loan is secured by a lien on a motor vehicle, or if the period of repayment of the loan is less than 180 days.

This new Senate resolution that’s put into motion is the SB 203 Bill. SB 203 is an attempt to amend Title 5 of the Delaware Code relating to licensed lenders.
In Delaware, all banking laws and regulations fall under Title 5.

One aspect of payday lending in Delaware that’s different than other states is the fact that most check cashing institutions in Delaware use thumbprint signature to process payday loans. Basically instead of signing the loan agreement form with their name, they are required to provide a thumbprint. This was implemented to help decrease check fraud. Since the induction of the program, payday loan institutions in Delaware have experienced a 63% reduction in check fraud.