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Delaware · checked October 24, 2026

Payday loans in Delaware: the rules and your way out

Payday loans allowed, with limits

Delaware lets licensed lenders make 'short-term consumer loans' (payday loans) of $1,000 or less due in under 60 days, with no fee or rate cap, but limits each borrower to five such loans (rollovers included) from all lenders in any 12 months, tracked in a state database.

Law: 5 Del. C. §§ 2227-2235C (Chapter 22, Subchapter III, Licensed Lenders: closed end credit and short-term consumer loans); 5 DE Admin. Code 2210. Delaware Code Online, which states it includes all acts enacted as of October 1, 2026 (through 85 Del. Laws c. 550), read 2026-10-24; Regulation 2210 (16 DE Reg. 658, 12/01/12)

Delaware's rules, line by line

Largest loan
$1,000 (a 'short-term consumer loan' is defined as a loan of $1,000 or less with a stated repayment period under 60 days; 5 Del. C. § 2227(7)).
Shortest term
No minimum term stated.
Longest term
Stated repayment period of less than 60 days (definition in 5 Del. C. § 2227(7)).
Fee or rate cap
No cap: a licensee may charge interest 'at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing the loan provides' (5 Del. C. § 2229), plus additional charges under § 2231.
Renewals and rollovers
No more than 4 rollovers of an existing short-term consumer loan (5 Del. C. § 2235A(a)(2)); each rollover or refinancing counts toward the 5-loan annual limit (§ 2235A(a)(1)).
Waiting period between loans
No waiting period between loans found.
Loans at once
No more than 5 short-term consumer loans from all licensees in any 12-month period, counting rollovers and refinancings; a loan made or collected in violation is void and the lender may not collect or keep any principal, interest or fees (5 Del. C. § 2235A(a)(1)).
Payment plan if you cannot pay
Not required. After the maximum rollovers a lender 'may' enter into a workout agreement (5 Del. C. § 2235A(a)(2)). If one is made, a workout agreement must provide equal installments over at least 90 days, with no added fee, interest or other charge for converting the loan (§ 2227(8); Regulation 2210 § 2.0). Ask the lender for a workout agreement on these terms.
State loan database
Yes: statewide real-time short-term consumer loan database run for the State Bank Commissioner (5 Del. C. § 2235B; 5 DE Admin. Code 2210 § 4.0); lenders must check it before lending.
Limits on collection
No licensee may pursue or threaten criminal action for nonpayment, including a returned check or ACH (5 Del. C. § 2235A(a)(4)). Loans made in violation of the 5-loan limit are void (§ 2235A(a)(1)). One late charge per installment, capped at 5% of the installment, if the agreement provides (§ 2231(2)). No prepayment charge (§ 2234(e)).
Other rights
Right of rescission: the borrower may return the full amount borrowed by close of business on the next business day without any fee or charge (5 Del. C. §§ 2227(5), 2235A(a)(3)). Prepayment in full at any time (§ 2234(a)). Application must be in English and Spanish and disclose that credit counseling is available (§ 2235A(b)).

If you are behind on a payday loan in Delaware

  1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

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