Effective January 1, 2013, Delaware licensed lenders will be able to make only five short-term consumer loans (sometimes called payday loans) in a twelve month period to any one borrower when the loans are made in the State of Delaware or when the borrower is a Delaware resident. This limitation was established by a new law that also changed the definition of short-term consumer loans to include loans up to $1,000.
To enable Delaware licensed lenders to comply with this law, the Office of the State Bank Commissioner has contracted with Veritec Solutions LLC (Veritec) to provide a database system that will allow those lenders to determine whether a consumer is eligible for such a loan.
The system will be available on January 1, 2013, and all Delaware licensed lenders making short-term consumer loans on and after that date must begin using this system. Prior to the end of this year, Veritec will be providing those lenders with specific information concerning the system’s use, including training schedules, registration procedures, and a preparation checklist.
Full Article here: Delaware Office of the State Bank Commissioner
The new regulations in the state bring these major changes:
- Five (5) loans per 12 month period (includes rollovers, refinance)
- All loans must be reported to database (in and out of state)
For the full rules, please click on the following link: Delaware Payday Loan Regulations.