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Key Votes

HB 289 - Limits Payday Loans - Key Vote

Delaware Key Votes

Jack Markell signed this Legislation.

Read statements Jack Markell made in this general time period.

Stages

Family

Issues

Stage Details

Legislation - Signed (Executive) -

Title: Limits Payday Loans

Legislation - Bill Passed (Senate) (20-1) -
Legislation - Bill Passed (House) (26-7) - (Key vote)

Title: Limits Payday Loans

Vote Smart's Synopsis:

Vote to pass a bill that limits the number of short-term consumer loans a person can acquire, effective January 1, 2013.

Highlights:
  • Limits the number of short-term consumer loans a borrower may acquire to no more than 5 in a 12 month period (Sec. 2).
  • Authorizes the  development of a database for lenders to determine the following (Sec. 3):
    • Whether a borrower has preexisting short-term consumer loans;
    • The number of preexisting short-term consumer loans a borrower has;
    • Whether a borrower is eligible for a short-term consumer loan; and
    • Any relevant information required to maintain compliance with this bill.
  • Amends the definition of “short-term consumer loans” to include loans of $1,000 or less, whereas existing law deines it as a loan of $500 or less (Sec. 1).
  • Requires “workout agreements” between borrowers and lenders to provide for payments to be made in equal installments over a period of at least 90 days, and prohibits the lender from assessing any other fees, interest charges, or other charges on the borrower as a result of altering the loan into a workout agreement (Sec. 1).
  • Defines “workout agreement” as an agreement between an individual borrower and licensed lender for the repayment of an outstanding debt (Sec. 1).
  • Prohibits a lender from engaging in any method meant to evade this law, including, but not limited to, the following (Sec. 2):
    • Offering, making, or assisting a borrower in obtaining a loan that is in violation of this chapter; and
    • Disguising a short-term consumer loan as a revolving line of credit, or assisting a borrower in obtaining a revolving line of credit for the purposes of evading the requirements of this law.
  • Requires the State Bank Commissioner to collect and submit a report on short-term consumer loans to the House of Representatives by March 15th of each year (Sec. 4).
Note:

NOTE: ACCORDING TO THE STATE CONSTITUTION, A BILL MUST RECEIVE THE VOTES OF A MAJORITY OF THE MEMBERS ELECTED TO EACH CHAMBER IN ORDER TO BECOME LAW. THEREFORE, A BILL MAY RECEIVE MORE 'YEAS' THAN 'NAYS' AND STILL FAIL BECAUSE IT DID NOT RECEIVE 'YEA' VOTES FROM A MAJORITY OF THE MEMBERS OF THAT CHAMBER.

Legislation - Introduced (House) -

Title: Limits Payday Loans

Sponsors

Co-sponsors

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