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DE HB181

DE HB181
An Act To Amend Title 5 Of The Delaware Code Relating To Interest Rates On Loans To Individuals.


summary

Introduced
05/11/2021
In Committee
05/11/2021
Crossed Over
Passed
Dead
06/30/2022

Introduced Session

151st General Assembly

Bill Summary

Delaware is one of a handful of states that has no cap other than unconscionability on interest rates for short-term consumer loans. Under Delaware case law, the unconscionability of an interest rate is decided by a court on a case by case basis. This Act caps interest rates at 20% for short-term consumer loans of $1,000 or less that must be repaid in less than 60 days and motor vehicle title loans.

AI Summary

This bill seeks to amend Title 5 of the Delaware Code by capping the annual percentage rate (APR) for short-term consumer loans of $1,000 or less that must be repaid in less than 60 days, as well as motor vehicle title loans, at 20%. Currently, Delaware has no cap on interest rates for such loans, aside from a case-by-case determination of unconscionability by the courts. This bill aims to provide a clear and specific interest rate limit for these types of short-term consumer loans in Delaware.

Committee Categories

Business and Industry

Sponsors (14)

Last Action

Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 3 Favorable, 2 On Its Merits, 2 Unfavorable (on 06/08/2022)

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