- Associated Press - Thursday, June 30, 2016

DOVER, Del. (AP) - Delaware lawmakers have introduced legislation to cap annual interest rates on payday loans.

The legislation introduced Thursday was prompted by a recent court ruling in which a judge said it was “unconscionable” for a company to demand repayment of $1,820 for a $200 loan.

In 2013, the General Assembly imposed limits on payday loans in 2013 but did not cap interest rates.

The legislation introduced Thursday would cap the annual interest rate on a payday loan at 100 percent. It would also prohibit the use of automated withdrawals on short-term loans for delinquency payments or accelerated default payments.

Lawmakers do not plan to work the bill this year but wanted to serve notice to the payday loan industry that reforms may be needed to discourage companies that prey on consumers.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide