Laws for PDL Companies
Date: Fri, 05/26/2006 - 19:30
I live in Delaware. I want to know what the laws are regarding PDL's in my state. Where can I find this info? I have tried searching using Payday loan laws in Delaware, but no luck. I know that a lot of banks and credit card companies are based out of DE so it doesn't seem promising that things that work for so in other states will work for me. Thanks for the help.
Hope this is what you are looking for. Quote:DELAWARE Del. C
Hope this is what you are looking for.
Quote:
DELAWARE Del. Code. Ann. Tit. 5 ?? 2227 et seq. Applicability: This statute applies to persons making more than 5 loans within any 12-month period, including those making short-term consumer loans. Check cashers are prohibited from advancing any monies on a postdated check. Exemptions: Banking organizations, federal credit unions or insurance companies; and any other person, if and to the extent that such person is lending money in accordance with and as authorized by any other applicable law of this State or the United States. Licensing requirements: Applicants shall pay to the Commissioner as an investigation fee the sum of $250. The applicant shall pay an annual license fee of $250 which shall be payable annually thereafter. Each license issued under this chapter shall state the address at which the business is to be conducted and shall state fully the name of the licensee. A copy of such license shall be prominently posted in each place of business of the licensee. No licensee shall maintain an office at any other location than that designated in the license. Every licensee shall file a surety bond of not less than $50,000 nor more than $200,000. In lieu of requiring the filing of a surety bond, the Commissioner may, at the Commissioner's discretion, accept from a licensee an irrevocable letter of credit of not less than $50,000 nor more than $200,000. Loan terms: A short term consumer loan is a loan of $500 or less made to an individual borrower that charges interest and/or fees for which the stated repayment period is less than 60 days and is not secured by title to a motor vehicle. A licensee may, following not more than the maximum allowable number of rollovers, enter into a workout agreement with the borrower or take such other actions as are lawful to collect any outstanding and unpaid indebtedness. No licensee shall make a short-term consumer loan unless such loan is subject to a right of rescission on the part of the individual borrower. Prohibited acts: No licensee shall: make more than 4 rollovers of an existing short-term consumer loan; 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; cause to be placed before the public in this State any false or misleading advertising matter pertaining to loans or the availability thereof. No order, warrant or claim of any kind, from any employee upon his or her employer, for any salary or part thereof due or to become due to such employee from such employer, shall be taken, accepted or agreed to be taken or accepted, as security for money loaned or to be loaned. No instrument evidencing a loan under this chapter shall contain any acceleration clause under which any part, or all of the unpaid balance, of the obligation not yet matured, may be declared due and payable because the holder deems himself or herself to be insecure or any power of attorney to confess judgment or any other power of attorney. Required disclosures: All short-term consumer loan must be evidenced by a written loan application (English and Spanish) a must contains a conspicuously displayed written disclosure that: The loan is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems; Additional fees may accrue if the loan is rolled over; and credit counseling services are available to consumers who are experiencing financial problems. Permitted charges: In the event of a borrower's default, the licensee may charge and collect a reasonable attorney's fee. The licensee may also, if the agreement governing, or the bond, note or other evidence of, the loan so provides, recover from the borrower all court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection agencies) actually incurred by the licensee. Penalties: Lenders operating without a license shall be fined not less than $50 nor more than $200 for each offense, or imprisoned not more than 3 months, or both. Licensees who violate the prohibitions against salary assignment and acceleration clauses shall be fined not less than $100 nor more than $500, or imprisoned not more than 6 months, or both. For every violation of this chapter by any association, firm, partnership, trustee system or combination of persons not incorporated, or by any corporation, any member of the association, firm, partnership, trustee system or combination of persons not incorporated, and the president, secretary or treasurer, or any person acting as agent of the association, firm, partnership, trustee system or combination of persons not incorporated, or corporation, may be proceeded against as a principal. |
