Bill > H7850

This bill allows Rhode Island to opt out of certain provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), a federal law that previously exempted out-of-state lenders from Rhode Island's interest rate limits, meaning lenders chartered in other states could charge higher interest rates than Rhode Island-based lenders. By opting out, Rhode Island can now apply its own interest rate limits and lending rules to all loans made within the state, regardless of where the lender is chartered. The bill also introduces the "Anti-Evasion of Lending Rules Act of 2026" to prevent lenders from using deceptive practices, such as disguising loans as sales or leasebacks, to get around these lending rules and interest rate caps, and clarifies that even entities that don't explicitly identify as lenders can be held responsible if they are essentially controlling or benefiting from loans that violate Rhode Island's laws. This legislation will take effect on October 1, 2026.

Business and Industry

https://status.rilegislature.gov/