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DE HB143

DE HB143
An Act To Amend Title 5 Of The Delaware Code Relating To Interest Rates On Loans To Individuals.


summary

Introduced
05/10/2023
In Committee
05/10/2023
Crossed Over
Passed
Dead
06/30/2024

Introduced Session

152nd 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 caps 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%. Previously, Delaware had no cap on interest rates for these types of loans beyond the requirement that they not be "unconscionable," which was determined on a case-by-case basis by the courts. This bill aims to provide a clear and consistent interest rate limit for these types of short-term consumer loans in Delaware.

Committee Categories

Business and Industry

Sponsors (14)

Last Action

Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House (on 05/10/2023)

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