Regulatory Alerts2012-10-01
Added · Updated
Proposed Regulation 2210: Short-Term Consumer Loans
The State Bank Commissioner proposes to adopt new Regulation 2210, implementing Delaware law regarding short-term consumer loans commonly known as payday loans. The regulation defines a short-term consumer loan as one of $1,000 or less with a repayment period of less than 60 days and prohibits licensees from issuing more than five such loans per borrower in any twelve-month period or allowing more than four rollovers. It mandates the use of a state database for tracking loans, requires specific disclosures including a right of rescission within one business day, and imposes an annual high-cost loan license fee surcharge of $1,500 per licensed office.