Bill > H6055

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 the state's interest rate limits. The legislation creates 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, using creative fee structures, or claiming to be agents or service providers for exempt entities. The bill applies to all types of loans made in Rhode Island, regardless of the medium used (including online, telephone, or mail), and covers situations where a lender might try to avoid state lending rules. If a lender violates these provisions, the loan becomes void, and the borrower can recover treble damages, statutory damages of $1,000 per violation, attorneys' fees, and other potential relief. The key purpose is to protect Rhode Island borrowers by ensuring that all lenders, including those from out of state, must comply with the state's interest rate limits and lending regulations, effectively closing loopholes that previously allowed lenders to charge excessive rates. The act will take effect on October 1, 2025.