Title 6 — Commerce and Trade

§ 2302. Secured demand loans for not less than $5,000 by banks and others. Every contract for the loan or advance of money by banking corporations, within this State, shall be subject to § 2301 of this title. In any case where loans or advances of money, made by banking corporati…

§ 2303. Loans of less than $500. Repealed by 71 Del. Laws, c. 254, § 34, eff. Mar. 30, 1998.

§ 2304. Usury defined; borrower’s rights and remedies where interest exceeds the lawful rate. (a) Usury is the charge to a borrower by a lender, directly or indirectly, of a higher rate of interest than that permitted by law. (b) When a rate of interest for the loan or use of mon…

§ 2305. Negotiable paper; rights of holders. Nothing in this chapter shall affect the holders of negotiable paper taken bona fide in the usual course of business.Code 1852, § 1160; 16 Del. Laws, c. 310, § 1; Code 1915, § 2621; 28 Del. Laws, c. 213; Code 1935, § 3101; 6 Del. C. 19…

§ 2306. Defense of usury as available to certain entities and associations. No corporation, limited partnership, statutory trust, business trust or limited liability company, and no association or joint stock company having any of the powers and privileges of corporations not pos…

§ 2307. International banking transactions. This chapter and any other law of this State limiting the rate or amount of interest, discount, points, finance charges, service charges or other charges which may be charged, taken, collected, received or reserved shall not apply to an…

§ 2400C. Short title. This chapter may be cited as the “Delaware Mortgage Loan Modification Services Act.”78 Del. Laws, c. 196, § 9;

§ 2401. Definitions. In this chapter: (1) “Buyer” means an individual who is solicited to purchase or who purchases the services of a credit service organization. (2) “Consumer reporting agency” has the meaning assigned by § 603(f), Fair Credit Reporting Act (15 U.S.C. § 1681a(f)…

§ 2401A. Short title. This chapter may be cited as the “Delaware Uniform Debt-Management Services Act.”75 Del. Laws, c. 430, § 1;

§ 2401C. Purpose. The purpose of this chapter is to protect homeowners from unfair or deceptive practices by providers of mortgage loan modification services.78 Del. Laws, c. 196, § 9;

§ 2402. Credit services organization. (a) A credit services organization is a person who, with respect to the extension of credit by others and in return for the payment of money or other valuable consideration, provides, or represents that the person can or will provide, any of …

§ 2402A. Definitions. In this chapter: (1) “Affiliate”: (A) With respect to an individual, means: (i) The spouse of the individual; (ii) A sibling of the individual or the spouse of a sibling; (iii) An individual or the spouse of an individual who is a lineal ancestor or lineal d…

§ 2402C. Definitions. As used in the chapter, unless the context requires otherwise: (1) “Commercial communication” means any written or oral statement, illustration, or depiction in any medium that is designed to effect a sale of or create interest in purchasing, any mortgage mo…

§ 2403. Prohibited conduct. A credit services organization, a salesperson, agent or representative of a credit services organization, or an independent contractor who sells or attempts to sell the services of a credit services organization may not: (1) Charge a buyer or receive f…

§ 2403A. Exempt agreements and persons. (a) This chapter does not apply to an agreement with an individual who the provider has no reason to know resides in this State at the time of the agreement. (b) This chapter does not apply to a provider to the extent that the provider: (1)…

§ 2403C. Exemptions. This chapter does not apply to: (1) An individual admitted to practice law in this State, who is in an attorney client relationship, while performing any activity related to the individual’s regular practice of law in this State; (2) A person doing business u…

§ 2404. Bond; surety account. (a) This section applies to a credit services organization required by § 2403(1) of this title to obtain a surety bond or establish a surety account. (b) If a bond is obtained, a copy of it shall be filed with the Secretary of State. If a surety acco…

§ 2404A. License required. (a) Except as otherwise provided in subsection (b) of this section, a provider may not provide debt-management services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the provid…

§ 2404C. Registration required. Unless exempted under this chapter, a person may not provide mortgage loan modification services to an individual who it reasonably should know resides in this State at the time it agrees to provide the services, unless the person satisfies the fol…

§ 2405. Registration. (a) A credit services organization shall file a registration statement with the Secretary of State before conducting business in this State. The registration statement must contain: (1) The name and address of the credit services organization; and (2) The na…

§ 2405A. Application for license — Form, fee, and accompanying documents. (a) An application for license as a provider must be in a form prescribed by the Attorney General. (b) An application for a license as a provider must be accompanied by: (1) A nonrefundable fee of $2,000, w…

§ 2405C. Registration procedure. (a) Except as otherwise provided in subsection (b) of this section, the Attorney General shall register a person in compliance with § 2404C of this title. (b) The Attorney General may deny registration if: (1) The application contains information …

§ 2406. Disclosure statement. (a) Before executing a contract or agreement with a buyer or receiving money or other valuable consideration, a credit services organization shall provide the buyer with a statement in writing, containing: (1) A complete and detailed description of t…

§ 2406A. Application for license — Required information. An application for a license must be signed under oath and include: (1) The applicant’s name, principal business address and telephone number, and all other business addresses in this State, electronic-mail addresses, and I…

§ 2406C. Form and content of contracts. (a) A contract for mortgage loan modification services shall be in writing and provided to the homeowner, without changes, alterations, or modification, for review at least 24 hours before it is signed by the homeowner. (b) A contract for m…

§ 2407. Form and terms of contract. (a) Each contract between the buyer and a credit services organization for the purchase of the services of the credit services organization must be in writing, dated, signed by the buyer, and must include: (1) A statement in type that is boldfa…

§ 2407A. Application for license — Obligation to update information. An applicant or licensed provider shall notify the Attorney General within 10 days after a change in the information specified in § 2405A or § 2406A of this title.75 Del. Laws, c. 430, § 1;

§ 2407C. Required disclosures. Any commercial communication by a mortgage loan modification services provider shall include the following statements in a clear and prominent format: (1) “(Name of Company) is not associated with the government, and our service is not approved by t…

§ 2408. Waiver. (a) A credit services organization may not attempt to cause a buyer to waive a right under this chapter. (b) A waiver by a buyer of any part of this chapter is void.68 Del. Laws, c. 180, § 1;

§ 2408A. Application for license — Public information. Except for the information required by § 2406A(8), (15), and (18) of this title and the addresses required by § 2406A(5) of this title, the Attorney General shall make the information in an application for a provider license …

§ 2408C. Prohibited acts. A mortgage loan modification services provider may not: (1) Misrepresent, expressly or by implication, that the provider is affiliated with, endorsed or approved by, or otherwise associated with: a. The United States government, b. Any governmental homeo…

§ 2409. Private enforcement. (a) A buyer injured by a violation of this chapter may bring an action for injunctive relief or recovery of damages, or both. The damages awarded may not be less than the amount paid by the buyer to the credit services organization and may include pun…

§ 2409A. License — Issuance or denial. (a) Except as otherwise provided in subsections (b) and (c) of this section, the Attorney General shall issue a provider license to a person who complies with §§ 2405A and 2406A of this title. (b) The Attorney General may deny a license if: …

§ 2409C. Enforcement. (a) The Attorney General shall have the same authority to enforce and carry out this chapter as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (b) If a court or tribunal of competent jurisdiction finds that any person h…

§ 2410. Enforcement by the Attorney General. (a) The Attorney General shall have the same authority to enforce and carry out this subchapter as granted by § 2517 of Title 29 and by §§ 2511-2527 and §§ 2531-2536 of this title. (b) Any violation of § 2403 of this title shall be dee…

§ 2410A. License — Timing. (a) The Attorney General shall approve or make a preliminary determination to deny an initial license as a provider within 120 days from the date that the Attorney General determines that the application as filed is complete. In connection with a reques…

§ 2411. Statute of limitations. An action may not be brought under § 2409 or § 2410 of this title after 4 years after the date of the execution of the contract for services to which the action relates.68 Del. Laws, c. 180, § 1;

§ 2411A. Renewal of licenses. (a) A provider must obtain a renewal of its license annually. (b) An application for renewal of a provider license must be in a form prescribed by the Attorney General signed under oath, and: (1) Be filed no fewer than 30 and no more than 60 days bef…

§ 2412. Criminal penalty. An offense under this chapter is a class B misdemeanor.68 Del. Laws, c. 180, § 1;

§ 2412A. License in another state. If a provider holds a license or certificate of registration in another state authorizing it to provide debt-management services, and the Attorney General has approved the application forms of that state for use under this chapter, the provider …

§ 2413. Burden of proving exemption. In an action under this chapter the burden of proving an exemption under § 2402 of this title shall be on the person claiming the exemption.68 Del. Laws, c. 180, § 1;

§ 2413A. Bond required. (a) Except as otherwise provided in § 2414A of this title, every licensed provider shall file with the Attorney General, in a form satisfactory to the Attorney General, an original corporate surety bond, with surety provided by a corporation authorized to …

§ 2414. Remedies cumulative. The remedies provided by this chapter are in addition to any other remedies provided by law.68 Del. Laws, c. 180, § 1;

§ 2414A. Bond required — Substitute. (a) In lieu of requiring the filing of a surety bond, the Attorney General may, at the Attorney General’s discretion, accept from a licensed provider an irrevocable letter of credit. Such irrevocable letters of credit shall be provided by an i…

§ 2415A. Requirement of good faith. A provider shall act in good faith in all matters under this chapter.75 Del. Laws, c. 430, § 1;

§ 2416A. Customer service. A provider that is required to be licensed under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate,…

§ 2417A. Prerequisites for providing debt-management services. (a) Before providing debt-management services, a licensed provider shall give the individual an itemized list of goods and services and the charges for each. The list must be clear and conspicuous, be in a record the …

§ 2418A. Communication by electronic or other means. (a) In this section: (1) “Federal act” means the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., as amended; (2) “Consumer” means an individual who seeks or obtains goods or services that ar…

§ 2419A. Form and contents of agreement. (a) An agreement must: (1) Be in a record; (2) Be dated and signed by the provider and the individual; (3) Include the name of the individual and the address where the individual resides; (4) Include the name, business address, and telepho…

§ 2420A. Cancellation of agreement; waiver. (a) An individual may cancel an agreement before midnight of the third business day after the individual assents to it, unless the agreement does not comply with subsection (b) of this section or § 2419A or 2428A of this title, in which…