5 Del. Admin. Code § 2210-4.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 2210-4.0 - Short-Term Consumer Loan Database

4.1 Prior to entering into a short-term consumer loan with a potential borrower, a licensee shall access the database to determine:

4.1.1 Whether a potential borrower has an outstanding short-term consumer loan;

4.1.2 The number of short-term consumer loans the borrower has outstanding;

4.1.3 Whether the borrower is eligible for a short-term consumer loan under 5 Del.C. § 2235A and this regulation; and

4.1.4 Any other information necessary for the licensee to comply with 5 Del.C. Ch. 22.

4.2 Immediately upon entering into a short-term consumer loan with a borrower, a licensee shall accurately submit to the database in the appropriate format:

4.2.1 The borrower's name, address, social security or employment authorization number, and gross monthly income;

4.2.2 The amount of the transaction;

4.2.3 The annual percentage rate of the transaction as computed under the federal Truth in Lending Act;

4.2.4 The date of the transaction; and

4.2.5 The anticipated date that the transaction will be paid off.

4.3 A licensee shall promptly submit to the database:

4.3.1 The date that a short-term consumer loan is paid in full or is otherwise satisfied; or

4.3.2 The date that a short-term consumer loan defaults and the amount of the default.

4.4 A licensee shall promptly correct any incorrect data entered into the database that was previously submitted.

4.5 A licensee must continue to enter and update all required information for any short-term consumer loans subject to 5 Del.C. § 2235A that are outstanding or have not yet expired after the date on which the licensee no longer has the license required by 5 Del.C. Ch.22.

4.5.1 Within ten business days after ceasing to make such loans, the licensee must submit a plan for continuing compliance with 5 Del.C. § 2235B (d) to the Commissioner for approval.

4.5.2 The Commissioner must promptly approve or disapprove the plan and may require the licensee to submit a new or modified plan that ensures compliance with 5 Del.C. § 2235B (d).

4.6 All borrower identifying information shall be deleted from the database on a regular and routine basis twelve months after the borrower's short-term consumer loan is paid off or otherwise satisfied.

4.7 All data collected pursuant to 5 Del.C. § 2235B and this regulation shall be used only as prescribed by 5 Del.C. Ch.22 or for research and reporting as authorized by the Commissioner.

5 Del. Admin. Code § 2210-4.0