Rhode Island opts out of federal law exempting out-of-state lenders from state interest rate limits.

This bill allows Rhode Island to reject federal provisions exempting out-of-state lenders from state interest rate limits. It aims to prevent evasion of Rhode Island’s lending rules and interest rate limits by clarifying that lenders, regardless of their location, must adhere to Rhode Island’s laws. The act prohibits disguising loans and charges to avoid state regulations and imposes penalties for violations. It takes effect on October 1, 2026.

Rhode Island opts out of federal law exempting out-of-state lenders from state interest rate limits.

This bill allows Rhode Island to reject federal provisions exempting out-of-state lenders from state interest rate limits. It aims to prevent evasion of Rhode Island’s lending rules and interest rate limits by clarifying that lenders, regardless of their location, must adhere to Rhode Island’s laws. The act prohibits disguising loans and charges to avoid state regulations and imposes penalties for violations. It takes effect on October 1, 2026.