H 7724

2026 -- H 7724
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 LC004648
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  STATE  OF        RHODE  ISLAND
  IN GENERAL ASSEMBLY
  JANUARY SESSION, A.D. 2026
  ____________
  AN ACT
  RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS
  Introduced By: Representative Patricia A. Serpa
  Date Introduced: February 12, 2026
  Referred To: House Corporations
 It is enacted by the General Assembly as follows:
1SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2
2 entitled "Small Loan Lenders" are hereby amended to read as follows:
319-14.2-8. Maximum loan and interest rate.
4(a) Every small loan lender may lend up to five thousand dollars ($5,000) in the aggregate
5 to one borrower and may charge, contract for, and receive on the loan interest on the unpaid
6 principal balance on a loan at a rate not exceeding the following:
7(1) Loans up to and including three hundred dollars ($300), three percent (3%) per month;
8(2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars
9 ($800), two and one-half percent (2.5%) per month; and
10(3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand dollars
11 ($5,000), two percent (2%) per month ninety-nine percent (99%) per annum, inclusive of any
12 origination and closing fee.
13(b) Origination fees shall not be more than ten percent (10%) of the original loan amount.
14(c) Closing fees shall not be more than four percent (4%) of the original loan amount.
15(d) In addition to any other fees permitted in this chapter, the following fees shall be agreed
16 to in writing between borrower and lender and are not included in the annual interest rate:
17(1) A late payment fee in the amount of five percent (5%) of the delinquent payment or
18 eighteen dollars ($18.00), whichever is greater; and
19(2) A returned payment fee up to thirty dollars ($30.00).
119-14.2-12. Small loans — No other charges — Exception.
2In addition to the interest and fees allowed in this chapter, no small loan licensee shall
3 directly, or indirectly, charge, contract for, or receive any other charges except credit insurance,
4 lawful filing fees and insurance charges, and other fees listed in § 6-26-2(c) or as authorized by
5 regulation.
6SECTION 2. This act shall take effect upon passage.
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  EXPLANATION
  BY THE LEGISLATIVE COUNCIL
  OF
  AN ACT
  RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS
  ***
1This act would establish a maximum per annum rate of interest on small loans at ninety-
2 nine percent (99%) and limit the amounts of origination and closing fees. This act would also
3 require that late fees and returned payment fees be agreed to in writing between borrower and
4 lender.
5This act would take effect upon passage.
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