Payday Advance Delaware
Those seeking Delaware payday advance loans should be aware of new legal guidelines governing them, regardless whether they come from physical companies throughout the state or through Internet lenders providing short-term cash advances over the Internet.
Delaware Payday Loans Explained
Short-term cash advances are designed to provide quick fixes to emergency financial situations that fall in between paydays. When you are strapped for cash to meet bills, rental or car payments, medical expenses, or other necessities, payday advances give you the cash required to get by until your next paycheck.
Payday loans provide needed cash, quickly, via simple application forms, limited required information, and without credit checks. Therefore, payday advances are available regardless whether you have good, bad, or no credit since the collateral held is your paycheck, through either a post-dated check or banking account information.
Applying for a Delaware Payday Cash Advance
If you want to pursue payday loans within the state of Delaware, you can obtain them either through a licensed state lender or online lender providing the newly established guidelines are observed.
The application process for a payday advance is normally fast and easy. You are required to fill out a short application form and provide proof of employment. You will also either provide the lender with a post-dated check to be cashed on the payment due date or provide your savings or checking account information (this is normally required in order for the company to deposit the loan once you are approved). The approval process normally takes less than 24 hours.
Current Legislation Governing Delaware Payday Loans
Delaware short-term cash advance lenders are required to obtain a license in order to provide payday loans to Delaware citizens. However, as of January 1, 2013, newly passed legislation went into affect restricting Delaware payday loans and those who provide them.
A limit on the number of short-term loans that a person can have in the state is now five within a 12-month period. This restriction includes loans that are extended or rolled over. For example, if you roll over one loan four times, that counts as four separate loans under the law.
Companies violating this portion of the law by lending more than the limited loan amount to an individual are prohibited from collecting interest, penalties, principal, or other fees. Short-term cash advances are monitored via a database operated by the Office of the State Bank Commissioner. The company must check this database of borrower information before approving a short-term loan so that they do not violate this stipulation of the law.
Short-term consumer loans have also been defined as amounts of up to $1,000. This part of the legislation actually increased the previous amount, which was set at $500, but it also included larger numbers of companies into the status of a short-term lender who must now adhere to the new regulations.
Also, the law specifies that cash advance payments must be made within a 90-day period in equal installments. The law also stipulates that "no other fee, interest charge, or other charge" can be added to the original loan agreement guidelines.
However, the amounts of the initial interest rates, fees, or charges are not specified under the law and are, therefore, deemed to be "without limit." Therefore, it is the responsibility of the person desiring a payday loan to shop around for the best initial deal on interest rates and associated fees. Severe penalties are applied to lenders who try to pass short-term loans as revolving lines of credit or encourage consumers to use them as such in order to bypass this stipulation of the law.
Where to Obtain Further Information
If you have further questions or require additional information concerning payday advance Delaware lenders and the laws governing them, you can contact the following source.
Delaware Office of the State Bank Commissioner
555 E. Loockerman Street, Suite 210
Dover, DE 19901