A N A C T
RELATING TO FINANCIAL INSTITUTIONS
Introduced By: Senator Kevin A. Breene
It is enacted by the General Assembly as follows:
SECTION 1. Section 19-14-26 of the General Laws in Chapter 19-14 entitled "Licensed Activities" is hereby amended to read as follows:
19-14-26. Penalty for violations -- (a) Any person and the several members, officers, directors, agents and employees thereof who knowingly violate or participate in the violation of any of the applicable provisions of this title or any regulation promulgated under this title, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than one thousand dollars ($1,000) or by imprisonment not exceeding one year, or both. Each violation shall constitute a separate offense. Complaints under the provisions of this chapter may be made by the director or the director's designee and shall not be required to give surety for costs. The attorney general shall prosecute all complaints under this chapter.
(b) Any person who makes or brokers a loan not invalid for any other reason who knowingly violates section 19-14-2 shall, in the discretion of the court, forfeit and have no right to collect or receive any interest, fees or charges whatsoever.
The amount of interest, fees or charges previously collected shall be credited to the principal balance of the loan then due and owing or paid to the debtor, at the option of the holder of the loan.
SECTION 2. Chapter 19-14 of the General Laws entitled "Licensed Activities" is hereby amended by adding thereto the following section:
19-14-26.1. Additional penalties. -- (a) Any person who makes or brokers a loan not invalid for any other reason who knowingly violates section 19-14-2 shall, in the discretion of the court, forfeit and have no right to collect or receive any interest, fees or charges whatsoever.
(b) In the case of any unlicensed transaction involving lending or loan brokering activities, the amount of interest, fees or charges previously collected shall be credited to the principal balance of the loan then due and owing or paid to the debtor, at the option of the holder of the loan.
(c) In the case of any unlicensed check cashing, sale of check, or electronic money transfer transaction, the amount of any fees or charges previously collected shall be paid to the person from whom the fee or charge was collected. In the event that the person who collected the fee or charge is unable to identify the person from whom the fee or charge was collected, such fee or charge shall be paid to the director to and for the use of the state.
SECTION 3. This act shall take effect upon passage.