Payday Loan help for Delaware people
"§ 2711. Requirement of license: No person shall engage in the business of cashing checks, drafts or money orders for a consideration without first obtaining a license from the State Bank Commissioner."
Top Queries
- How do I find if a company is licensed in Delaware or not?
- How much a lender can lend and how much they can charge in fees?
- What if a consumer defaults over a short-term loan?
- Where to file complaints if I find any company violating the rules?
How do I find if a company is licensed in Delaware or not?
Visit the website of the Office of the State Bank Commissioner to search for licensed lenders.
How much a lender can lend and how much they can charge in fees?
The loan limit is $ 500.00 and lender can charge 2% of the loan amount or $4.00 whichever is greater. Lenders cannot make more than 4 rollovers/extensions/renewals. If the customer is not able to pay the loan back within that time, the lender must offer some repayment plan or some other ways to pay the loan.
Note: A written agreement is must before entering into business. The lender must mention following points in easy and understandable language in the agreement paper:
- The loan is designed for short-term financial solution, not for longer term financial problems.
- Additional fees may accrue if the loan is extended.
- Consumers experiencing financial problems can avail credit counseling services.
What if a consumer defaults over a short-term loan?
No criminal action can be taken against the consumer due to nonpayment of outstanding amount or, unpaid return check or automated clearing house transaction. Lender can collect reasonable collection cost or attorney’s fees, provided these additional charges are mentioned in the agreement paper.
Where to file complaints if I find any company violating the rules?
Office of the State Bank Commissioner looks after Check Cashing/Deferred Presentment Institutes in Delaware. Hence, any queries or complaints should be forwarded to them.
