HB 303 Summary

• Establishes the "Delaware Predatory Refund Anticipation Lending Prevention Act" to regulate loans made in anticipation of tax refunds and prohibit predatory lending practices.

• Requires facilitators (lenders) to obtain a $1,000 annual license from the State Bank Commissioner and post a bond of $50,000 per location (up to $300,000 maximum).

• Mandates clear disclosure of loan fees, annual percentage rates, and information about alternative options like electronic filing, provided in English and Spanish before applicants complete loan applications.

• Prohibits facilitators from requiring customers to take loans to complete tax returns, misrepresenting loan terms, or engaging in fraudulent practices; provides borrowers a right to rescind loans within one business day.

• Imposes special protections for military members including prohibition on wage garnishment, suspension of collection during combat deployment, and ban on contacting military chain of command.

• Establishes $10,000 per violation fines, license suspension/revocation authority for the Commissioner, and creates private cause of action for borrowers with attorney's fees available to prevailing parties.