The high price of borrowing makes Delaware residents very likely to belong to a financial obligation trap.

Licensed loan providers in Delaware have to cap term that is short loans at $1,000. They are loans of not as much as 60 times being “not guaranteed by title to an automobile.” Nevertheless, the state doesn’t control APRs. Finalized prices are negotiable and determined by the financial institution plus the debtor.

In 2012, Delaware’s state legislature passed home Bill 289, which increased the restriction on short term installment loans from $500 to $1,000. Read more