Payday Loans in Delaware Law
The unemployment rate in Delaware stood at 5.1% in 2015. Today, tons of residents of the state are turning to payday loans when they need financial assistance. Delaware payday loans laws have gone though a few changes through the years.
Delaware was discovered in 1609 by Dutch sailor Henry Hudson. In 1664, England took over the region and in 1704, in the American Revolution, Delaware fought as an independent state. In 1787, it became the first state to ratify the Constitution. Even though it was a slave state, Delaware did not secede from the Union in the Civil War.
Delaware is known for its huge chemical industry. The state manufactures medical supplies, vulcanized fiber, paper, textiles, metal products, machine tools, machinery and automobiles. Delaware is also a pioneer in the US food-canning industry, producing soybeans, corn, potatoes and other important crops. The state also supplies the big Eastern markets with fish and dairy products.
Delaware is the second smallest state in America and it is the 6th least populous state with it’s population being near 945,934.
What is a payday loan?
Delaware payday loans laws regulations
As of today, payday loans in Delaware are legal according to Del. Code Ann. tit. 5 § 2227 et seq. Under the small loan act and licensing law, payday loan lenders are considered legal businesses in Delaware.
In Delaware, borrowers are required to provide a thumbprint along with their actual signature when signing a loan contract. The reason behind the introduction of this requirement was to protect its residents from dishonest payday loan lenders. That measure proved to be very effective as it reduced the number of fraud cases rates by 60%. The thumbprint is required from borrowers with any type of loan application – whether it is applied via the phone, in person or online. In Delaware, you are not allowed to get a loan if you have already exceeded the limit of 5 short-term loans in the last 12 months. In Delaware, there is a minimum repayment term of 60 days and lending companies cannot require the repayment to be made before that. Borrowers in Delaware are allowed up to 4 rollovers on each loan they have taken out. Another option is taking title loans in Delaware.
Delaware Payday loans fees and charges
Delaware payday loans laws are pretty different from other states when it comes to APR, fees and charges. There are no exact limitation a lending company should follow. That way, they can decide how much to charge their clients and in what form.
Lending companies can require interest to be paid at a daily, weekly, monthly or annual percentage rate. There is no limit to how much a lending company can charge you. All terms and conditions must be agreed with the borrower, which makes every lending contract unique. The maximum loan amount a borrower can take out in Delaware is $500 and a borrower isn’t able to ask for another loan before he repays his current one.
Why having a payday loan in Delaware may work in your favor?
Acquiring a payday loan can have a positive effect on your financial stability as it comes with lots of benefits:
Bad credit is not an issue
While traditional banks will most likely crush your hopes of getting financial assistance if your credit score is bad, with payday loans, having bad credit can cannot stop you from getting the money you need. This makes the service a first choice for many borrowers with poor credit ratings.
Get your money fast
The service of payday loans is extremely fast as you get hold of your money within a few hours after your application. If you want to acquire a loan online, it can take up to one business day to receive the cash.
More than one option
If you want to getr a payday loan and you’re searching for a payday lender’s store near your house or office but you can’t find one, you actually have the option to submit your application online. So whether you want to visit an on-ground store or submit your application online from your house is entirely up to you.
Application requirements for a payday loan in Delaware
As mentioned above, payday loans are a fast and simple service. While payday loan lending companies don’t ask for much documents to give you a loan, there are still some requirements you have to meet:
- Must be an adult
- You need to have a resident permanently in America or with citizenship
- You need to have a steady stream of funds each month
To complete the application, you should also have more information like:
- When you were born, your full name, and the number for social security
- Contact Information
- Details about your salary and your job
Cities in Delaware where a lender with payday loans work:
- New Castle
- Rehoboth Beach