DOVER, Del. (AP) - A bill to regulate and monitor payday loans in Delaware has narrowly cleared the state House and is headed for the Senate.
The House voted 26-to-7 for the bill Tuesday, giving it one more vote than the required three-fifths majority.
Payday loans typically are small, short-term loans with high interest rates that effectively represent advances on a borrower's next paycheck.
The bill would permit a borrower to obtain no more than five payday loans in a 12-month period and would limit a lender to no more than four rollovers of an existing payday loan.
The bill also calls for the creation of a database overseen by the state that lenders would use to determine whether a potential borrower already has an outstanding payday loan.
