Delaware Code Title 5 Sec. 951 – Attorney’s fees; costs
In the event a borrower defaults under the terms of a plan, the bank may, if the borrower’s account is referred to an attorney (not a regularly salaried employee of the bank) or to a third party for collection and if the agreement governing the revolving credit plan so provides, charge and collect from the borrower a reasonable attorney’s fee. In addition, following a borrower’s default, the bank may, if the agreement governing the plan so provides, recover from the borrower all court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection agencies) actually incurred by the bank.
63 Del. Laws, c. 2, § ?4; 66 Del. Laws, c. 283, § ?10; 72 Del. Laws, c. 15, § ?11;
Terms Used In Delaware Code Title 5 Sec. 951
- Bank: means any bank or bank and trust company organized under this title or any other law or laws of this State, any depository institution organized under the authority of the United States and having its principal place of business in this State and any foreign bank agency. See Delaware Code Title 5 Sec. 941
- Borrower: means any corporation, partnership, association, government or governmental subdivision or agency, trust, individual or other entity. See Delaware Code Title 5 Sec. 941
- plan: means a plan contemplating the extension of credit under an account governed by an agreement between a bank and a borrower pursuant to which:
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC