Speaking to hundreds of leading advocates Wednesday at the Governor’s Summit on Child Poverty and Economic Opportunity, Gov. Jack Markell announced he will be proposing legislation to protect Delaware families from predatory lendors.
“It is difficult for children to get off to a good start in life when their parents are in danger of losing the family home,” Markell said. “Families who fall victim to subprime loan schemes and other financial predators see their economic opportunity crumble beneath a mountain of high interest rates.”
The proposals, which Markell will discuss next week in his address to a joint session of the Delaware General Assembly, focus on a particular type of predatory lenders: those who issue payday loans and title loans.
Specifically, the legislation would require that any payday lender who wants to set up shop in Delaware be licensed by the state and would need to pay a $1,500 fee that will go to making low-interest lending programs available. The Governor also proposal also demands a similar license and fee from title lenders and goes one step further by requiring the lenders to cease all liabilities on the loan once the family surrenders the title.
“I will ask legislators next week to stand with these families and stand against these financial predators,” Markell said. “People deserve access to jobs where their hard work can be rewarded. Families deserve the chance to become, and remain, financially independent.”
