News About the Ever-Changing Payday Advance Industry
Section
Yes — payday (short-term) loans are legal in Delaware, and the state sets no cap on interest or APR, so they can be very expensive. Instead of a price limit, Delaware throttles access: loans top out at $1,000, you may take no more than five short-term loans in a year and roll one over no more than four times, all tracked by a statewide database.
| Status | Legal — no rate cap, but access is limited |
|---|---|
| Interest / APR cap | None — short-term loans can be very expensive |
| Maximum loan | $1,000 |
| Loan term | Less than 60 days |
| Loans per year | No more than 5 short-term loans (incl. rollovers) in any 12 months |
| Rollovers | No more than 4 per loan |
| Statewide database | Yes — checked before each loan |
| Workout plan | Available — equal installments over at least 90 days, no extra fees |
| Regulator | Office of the State Bank Commissioner |
| Law | Del. Code Title 5, Ch. 22 (§ 2235A) |
Short-term lenders in Delaware are licensed by the Office of the State Bank Commissioner. To report a violation or an illegal lender, use the online complaint form.
Because Delaware sets no rate cap, the cost can be steep — weigh a credit-union payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling first. See our guide to payday loans and alternatives.
A lender can garnish wages in Delaware only after it sues and wins a court judgment, and federal law then caps how much can be taken. Delaware operates a real-time payday-loan database, so state limits on how many loans you can hold at once are enforced across all lenders. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Delaware Office of the State Bank Commissioner before borrowing. Last reviewed 2026.
Sources
Yes. Short-term consumer loans are legal under Del. Code Title 5, Ch. 22, overseen by the Office of the State Bank Commissioner. Delaware sets no cap on the interest rate.
Up to $1,000, for a term of less than 60 days.
No more than five short-term loans (including rollovers) in any 12-month period, enforced by a statewide database.
Yes. You can request a workout agreement — equal installments over at least 90 days with no additional fees.
Delaware
Seeking to break “the endless cycle of debt and despair” caused by high-cost payday advance lending, a Wilmington nonprofit organization Monday launched an alternative program with low interest rates and longer terms.
Delaware
First Bank of Delaware discontinued the use of payday loans a few months ago. We had the report.
Delaware
According to The News Journal, payday loan applications are on the rise throughout Delaware. The payday advance industry in the state has grown from just a few hundred outlets a decade ago to more than 20,000 today. They lend an estimated…
Delaware
Under pressure from federal regulators, First Bank of Delaware plans to end its involvement with with payday loans and cash advances.
Delaware
Rehoboth Beach, DE — County Bank is ending its eight-year involvement in the industry of payday advances. Harold L. Slatcher, president of the Rehoboth Beach, Delaware-based bank, said Tuesday that the bank will end all partnerships with…