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RI H7850
Bill
Status
2/27/2026
Primary Sponsor
Arthur Handy
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AI Summary
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Rhode Island opts out of the federal Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), removing the exemption that allowed out-of-state financial institutions to bypass Rhode Island's interest rate limits on loans made in the state.
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Creates the "Anti-Evasion of Lending Rules Act of 2026" prohibiting schemes to circumvent state lending laws, including disguising loans as sale-leaseback transactions, cash rebates, or sales of goods/services.
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Entities holding predominant economic interest in loans or controlling loan programs are classified as lenders subject to state lending laws, regardless of whether they claim to be agents or service providers for exempt institutions.
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Loans violating these provisions are void and uncollectible; borrowers may recover all amounts paid plus treble damages on excess charges, $1,000 statutory damages per violation, and attorneys' fees.
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Effective October 1, 2026.
Legislative Description
Allows RI to opt out of the provisions of DIDMCA exempting out of state lenders from interest rate limits which apply to RI lenders. Prevents evasion of statutory interest rate limits and lending rules for loans made in RI.
Commercial Law
Last Action
Committee recommended measure be held for further study
3/3/2026