Delaware

Legal Status

Legal

Citation

Del. Code Ann. Tit. 5

Loan Terms

Maximum Loan Amount: $1,000

Loan Term: No more than 60 days

Maximum Finance Rate and Fees: No limit

Finance Charge for 14-day $100 Loan: No limit

APR for 14-day $100 Loan: No limit

Debt Limits

Maximum Number of Outstanding Loans at One Time: Notwithstanding any other provision of law, no licensee shall make, and no borrower shall receive, a short-term consumer loan that would cause the borrower to have more than 5 short-term consumer loans from all licensees in any 12-month period. 5 Del. C. § 2235A(a)(1)

Rollovers Permitted: No bank, trust company or savings bank shall make more than 4 rollovers of an existing short-term consumer loan. 5 Del. C. § 978(a)(1). See also: No licensee shall make more than 4 rollovers of an existing short-term consumer loan 5 Del. C. § 2235A(a)(2).

Repayment Plan: Yes - voluntary, referred to as a workout agreement. The workout agreement must provide for payments in equal installments over a period of at least 90 days and the licensee may not assess any other fee, interest charge, or other charge on the borrower as a result of converting the loan into a workout agreement. 5 Del. C. § 2227(8)

Collection Limits

Collection Fees: A licensee may impose, as interest, a late or delinquency charge upon any outstanding unpaid installment payments or portions thereof under the loan agreement which are in default; provided, however, that no more than 1 such delinquency charge may be imposed in respect of any single such installment payment or portion thereof regardless of the period during which it remains in default; and provided further that no such delinquency charge may exceed 5% of the amount of any such installment or portion thereof in default. 5 Del. C. § 2231(2). Attorney's fees also - see 5 Del. C. §2236.

Criminal Action: No bank, trust company or savings bank shall pursue or threaten to pursue criminal action against an individual borrower in connection with the nonpayment of any amount due, including the unpaid return of any check or automated clearinghouse transaction. 5 Del. C. § 978(a)(3). See also: No licensee shall pursue or threaten to pursue criminal action against an individual borrower in connection with the nonpayment of any amount due, including the unpaid return of any check or automated clearing house transaction. 5 Del. C. § 2235A(a)(4).