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In a move to protect consumers from predatory lending practices, lawmakers in Delaware have passed a series of new bills aimed at regulating debt collection and strengthening consumer protection laws. The legislation, which was approved by the state legislature on Tuesday, is set to go into effect on January 1, 2026.One of the key provisions of the new legislation is a cap on interest rates for certain types of loans, including payday loans and car title loans. Under the new law, lenders will be prohibited from charging interest rates higher than 36% on these types of loans. This is a significant change from the previous cap of 521% on payday loans and 300% on car title loans.In addition to the interest rate cap, the new legislation also includes provisions for more transparency in debt collection practices. Debt collectors will now be required to provide consumers with detailed information about their debts, including the original creditor and the amount owed. This information must be provided in writing, and consumers will have the right to dispute any inaccuracies.Another key aspect of the new legislation is the creation of a debt repayment plan option for consumers who are struggling to pay off their debts. Under this program, consumers will have the opportunity to work with a certified credit counselor to develop a manageable repayment plan that fits their financial situation. This will help consumers avoid falling further into debt and facing aggressive collection tactics.Overall, the new legislation represents a major step forward in protecting Delaware consumers from unfair and deceptive debt collection practices. By imposing stricter regulations on lenders and debt collectors, lawmakers hope to level the playing field for consumers and prevent them from falling victim to predatory lending practices.The new laws are set to have a significant impact on the debt collection industry in Delaware, with many lenders and debt collectors expected to adjust their practices to comply with the new regulations. Consumer advocacy groups are hailing the legislation as a major victory for consumer rights, and are hopeful that it will serve as a model for other states looking to strengthen their consumer protection laws.