DOVER, Del. (AP) - The state House is poised to consider a bill aimed at regulating and monitoring payday loans in Delaware.
Payday loans typically are small, short-term loans with high interest rates that effectively represent advances on a borrower's next paycheck.
A bill up for a House vote on Thursday would permit a borrower to obtain no more than five payday loans in a 12-month period. It also changes the definition of short-term consumer loan to include loans up to $1,000 rather than $500.
The bill also would limit a lender to no more than four rollovers of an existing payday loan.
The legislation also calls for the creation of a database that would allow lenders to determine whether a potential borrower has an outstanding payday loan.