Some states in the US set different regulations for payday loans even though all of them have the same purpose to protect the costumers. In Delaware, the state authorities set strict rules to regulate the payday loans system. If you are currently looking for payday loans in Delaware, here is everything you need to know about the regulations set in the state.
Why Payday Loans?
Payday loans become extremely popular now due to some reasons. The loan application process is not only simple but it can also be completed quickly. Just within minutes, the money needed will be in your hands. Interestingly, with or without a bank account, you can still get your payday loans approved by the credit companies. This will be one of the easiest solutions that you can take if you have emergency needs such as short-time loans and unexpected bills. With the increasing number of people in Delaware who see the payday loans as their quick financial solutions, a set of regulations are made to protect the consumers.
Payday Loans Law in Delaware
For some times, there pros and cons emerge surrounding the payday loans in Delaware. It enforces the state authorities to create payday legislation for the solution. So, how is the arrangement? Payday loans in Delaware are stated legal under Licensing Law or Small Loan Act. Based on the regulation set, the lender is only permitted to give out a loan for $1,000 at maximum. There will be no additional loans granted if the loan debt has not been settled first. The minimum repayment term that is allowed by the state’s cash advance loan regulation is 60 days. In other words, the lenders are not allowed to ask for the full repayment before the minimum repayment term is completed. In addition, the state laws also prohibit the credit companies from charging additional interest on the loan that is being deferred. However, the state of Delaware does not make any regulations related to the interest rates, fees, and charges. So, this will be the credit companies preference to set up the charging amount addressed to the borrowers.
There are some requirements that the borrowers should fulfill when applying for payday loans in Delaware. The requirements are designed to make sure that the consumers’ rights are protected as well as avoid them from being victims of irresponsible credit companies. Some of the requirements needed include:
- a regular source of income or salary from the borrowers to make sure that they are capable to pay the loans
- the borrowers should be the citizen of the United States
- a borrower’s signature
- a thumbprint of the borrowers that should be added to their original signature
To help the consumers if they have issues related to the payday loans they apply, the state also provides an organization where the consumers can make report anytime they have problems with their loans. The Delaware State Bank Commissioner can be contacted if you find out that the online lenders do not follow the regulations made by the state.