Payday loans in Delaware

Are payday loans legal in Delaware?

Payday loans are legal in Delaware, and state law does not cap the fees a lender may charge, so prices vary widely from one lender to the next.

The governing law is Del. Code Ann. Tit. 5. Delaware Office of the State Bank Commissioner licenses lenders and takes complaints. Check a lender’s license there before you share bank details; how to tell if a lender is legitimate lists the other checks.

Loan limits in Delaware

• Loan size: up to $1,000
• Loan term: No more than 60 days
• Loans at one time: Notwithstanding any other provision of law, no licensee shall make, and no borrower shall receive, a short-term consumer loan that would cause the borrower to have more…
• Rollovers: No bank, trust company or savings bank shall make more than 4 rollovers of an existing short-term consumer loan.
• Repayment plan: Yes - voluntary, referred to as a workout agreement.

What a payday loan costs in Delaware

State law sets the price rule: No limit.

Federal law requires the lender to state the finance charge in dollars and the APR in your agreement. Read both before you sign, and set them beside the example further down this page.

A loan that meets the Northlight standard

Northlight works only with loans that carry an APR of 35.99% or less, fees included, and give you at least 3 months to repay. A single-payment payday loan under Delaware law does not meet that standard, whatever its fee, because it falls due in one payment within weeks.

For example, $1,000 repaid over 12 months at 35.99% APR is 12 payments of $100.46, or $1,205.52 in total. The calculator prices other amounts and terms.

If you cannot repay a loan in Delaware

Contact the lender before the due date and ask for a payment plan in writing. The state rule: Yes - voluntary, referred to as a workout agreement. On criminal threats: No bank, trust company or savings bank shall pursue or threaten to pursue criminal action against an individual borrower in connection with the nonpayment of any amount…. If a lender or collector breaks the rules, file a complaint with Delaware Office of the State Bank Commissioner and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Delaware

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives.