Delaware Code Title 5 Sec. 2235B – Database
(a) The Commissioner shall, by contract with a third-party provider or otherwise, develop and implement a common database with real-time access through an Internet connection by means of which a licensee may determine:
(1) Whether a borrower has an outstanding short-term consumer loan;
(2) The number of short-term consumer loans the borrower has outstanding;
(3) Whether the borrower is eligible for a loan under § 2235A(a) of this title; and
(4) Any other information necessary to comply with this chapter.
Terms Used In Delaware Code Title 5 Sec. 2235B
- Commissioner: means the State Bank Commissioner. See Delaware Code Title 5 Sec. 2201
- Contract: A legal written agreement that becomes binding when signed.
- Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Source: OCC
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Loan: means any single extension of closed end credit. See Delaware Code Title 5 Sec. 2227
- Short-term consumer loan: means a loan of $1,000 or less made to an individual borrower that charges interest and/or fees for which the stated repayment period is less than 60 days and is not secured by title to a motor vehicle. See Delaware Code Title 5 Sec. 2227
(b) The Commissioner shall ensure that the provider of the database referred to in this section is responsible to:
(1) Establish and maintain a process for responding to transaction verification requests from a licensee in the event the database is inaccessible due to technical difficulties;
(2) Take reasonable measures to prevent identity theft;
(3) Provide accurate and secure receipt, transmission and storage of borrower data; and
(4) Provide the Commissioner or his or her designee complete access to the database.
(c) Licensees shall:
(1) When entering into a short-term consumer loan, accurately and immediately submit to the database any data in the format that the Commissioner may require, including the borrower’s name, address, social security or employment authorization number, gross monthly income, amount of transaction, interest rate, date of transaction, anticipated date loan will be paid off;
(2) Promptly correct any incorrect data entered into the database that was previously submitted; and
(3) Promptly record the date a short-term consumer loan is paid in full.
(d) A licensee must continue to enter and update all required information for any short-term consumer loans subject to this section that are outstanding or have not yet expired after the date on which the licensee no longer has the license required by this chapter. Within 10 business days after ceasing to make loans subject to this section, the licensee must submit a plan for continuing compliance with this subsection to the Commissioner for approval. 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 this section.
(e) The Commissioner shall adopt rules or regulations for the administration and enforcement of this section. Such regulations shall include:
(1) A requirement that identifying borrower information is deleted from the database on a regular and routine basis, 12 months after the loan is paid off;
(2) Standards for the retention, archiving, and deletion of information entered or stored in the database;
(3) A requirement that data collected pursuant to this section be used only as prescribed in this chapter or for research and reporting as authorized by the Banking Commissioner;
(4) A rule authorizing a fee per transaction for data required to be submitted. The fee shall be payable by the licensee to the Commissioner. The fee must reasonably reflect the costs necessary to defray the expenses associated with administering the provisions of this section. A customer shall not be charged all or part of the fee.
(f) The database established under this section shall not be considered a public record for purposes of the Freedom of Information Act in Chapter 100 of Title 29.