Payday loans are short term unsecured loan and definitely intended as advance of borrower’s forthcoming paycheck. The payday lender considers the borrower’s recent paycheck or income history as basis for loan amount approval and the repayment terms. In Delaware, the state also has laws and regulations pertaining to the use of payday loans, just like in the other states.
It is a fact that most states throughout the United States require a payday lender to get the signature of the borrower before disbursing the amount requested or loaned. Come to think of it! Most lenders would ask the borrower to sign the documents of acknowledging the loan. However, in the state of Delaware the lender must also ask the thumb print of the borrower for the loan documents to be valid.
The added measure is implemented in Delaware, so as to reduce fraud cases or prevent scrupulous borrowers from taking advantage of the easy loan process offered by payday lenders. The thumb print feature in payday loan documents is unique and implemented on 2010.
Terms of Repayment
The different states differ on the time of loan repayment granted to borrower. Some states require repayment of loan in one or two weeks. But the Delaware, the law grants borrowers 60 days loan repayment. The Delaware payday loan law also let borrower extend their repayment terms to four extensions.
Limitations in Fees
The Delaware law places no limitations on fees charge by payday lenders to borrowers, which means lender can charge any rates that borrower, will agree to pay. It is perfectly legal for lender to charge fees as well as interest for the loan on a daily, bi-weekly or even monthly basis.
The maximum amount loan in Delaware for payday loans is $500 at a time. Borrowers only be approve for one loan at any given time and so until the loan is repaid then they will have to wait to apply for a loan again.Share