Delaware Limits Payday Loans
Newsworks.org
June 27, 2012
Min, Shirley
Delaware Gov. Jack Markell on June 27 signed into law a measure that limit borrowers in the state to five short-term loans of $1,000 or less per year, including rollovers and refinancing. "We recognize some people need immediate access to an immediate loan. This bill maintains that choice," he said. "Instead of a financial hand up, though, repeated use of these loans can become a set of financial handcuffs." According to the bill's sponsor, Rep. Helene Keeley (D-Wilmington South), high interest rates and fees on payday loans often result in defaults. "This bill will hopefully help break that cycle and put people back on the right path," she said. Additionally, the measure creates a database to track the number of short-term loans a borrower has obtained.
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