Rhode Island S3196 would subject litigation loan agreements to state usury laws.
Rhode Island S3196 would make litigation loan agreements subject to state usury laws. This means that any agreements where money is advanced to a litigant in return for repayment from litigation proceeds would be considered loans under state law. The bill aims to prevent litigation financing contracts with excessive interest rates, which can exceed 100% and harm the general welfare of the state. The act would take effect upon passage.
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