Payday Loan Laws

The final rules for Delaware short-term lending have been released. Despite our lobbying efforts and testimonies from multiple OLA member companies, the Banking Commissioner chose to implement regulation that subjects Delaware residents to unlicensed lenders, eliminating Delaware jobs and putting customers at greater risk.

While we fought these efforts at every turn, this will significantly change our businesses for the time being. OLA will continue to work in the state on corrective measures from legislation to regulation, as well as other efforts to support the "choice of law" model of online lending.

The new regulations in the state bring these major changes:

For the full rules, please click on the following link: Deleware Payday Loan Regulations.

Delaware Payday Loan Laws - 7/20/2012 Update:

Residents of Delaware can take out five payday loans in any given year.

Gov. Jack Markell, (D-Del), signed legislation, Wednesday, that limits borrowers to five payday loans of $1,000 or less in a 12-month period, including rollovers or refinancing.

“We recognize some people need immediate access to an immediate loan. This bill maintains that choice,” Gov. Markell said. “Instead of a financial hand up, though, repeated use of these loans can become a set of financial handcuffs.”

“People who regularly take out or roll over payday loans are in untenable financial situations and desperately need relief,” said Rep. Keeley. “This bill will hopefully help break that cycle and put people back on the right path.”

The bill also creates a database to track the number of payday loans a person has obtained.

Delaware Payday loan laws. Delaware Payday loan legislation. Delaware has specific payday advance laws. The rate of interest is determined by the parties to the loan.

The term of a payday loan is 59 days. Maximum amount of a cash advance is $500. Rollovers are limited to four.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday and Paycheck

Delaware State Information

Legal Status: Permitted under small loan act or licensing law - Legal

Del. Code Ann. Tit. 5 § 2227 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified
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: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Four (rollovers)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees:
Criminal Action:

Regulator: Delaware Office of the State Bank Commissioner
Address: 555 E. Loockerman Street Suite 210 Dover DE 19901
Phone: (302) 739-4235
Fax: (302) 739-3609
Regulatory Contact: , Administrator, Non-Depository Institutions and Compliance
Regulator Website

Licensee Database