Bill > S0386

This bill allows Rhode Island to opt out of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), a federal law that previously exempted out-of-state lenders from state-specific interest rate limits. By amending state law, the bill introduces the Anti-Evasion of Lending Rules Act of 2025, which prevents lenders from circumventing Rhode Island's lending regulations through various tactics such as disguising loans as sales, hiding true interest rates, or using complex corporate structures. The legislation applies to all loans made in Rhode Island, regardless of the lender's physical presence in the state, and covers transactions conducted through any medium including paper, mail, internet, or electronic means. If a lender violates these rules, the loan becomes void, and the borrower can seek restitution, including potential damages up to three times the excess fees charged, statutory damages of $1,000 per violation, and attorneys' fees. The bill is designed to protect Rhode Island consumers from predatory lending practices and ensure that all lenders, whether local or from out of state, adhere to the state's lending regulations. The provisions will take effect on October 1, 2025.

Business and Industry

https://status.rilegislature.gov/