2012 -- H 7528

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LC00724

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO FINANCIAL INSTITUTIONS - POWERS AND OPERATIONS

     Introduced By: Representatives Trillo, Ruggiero, Ferri, Chippendale, and Williams

     Date Introduced: February 15, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 19-3 of the General Laws entitled “Powers and Operations” is

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hereby amended by adding thereto the following section:

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     19-3-13.3. Assignment of revolving loans and credit card debt - Limits of recovery. –

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      (a) Any person or entity who shall purchase any revolving loan or credit card debt or

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obligation from any creditor after such debt is in default, shall not be entitled to recover from the

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obligor of said debt more than three (3) times the purchase price which was paid for said debt,

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including, but not limited to, interest, attorney fees or any other penalty, charge or fee which may

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be due in connection with said debt.

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     (b) In the event of a bulk purchase of more than one or more revolving loan or credit card

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debts by any person or entity described in subsection (a), then the person or entity purchasing

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said debts shall not be entitled to receive more than three (3) times the amount that any single

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individual or entity may owe after pro rating such single amount against the full amount of the

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purchase price for such bulk purchase.

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     SECTION 2. This act shall take effect upon passage.

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LC00724

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - POWERS AND OPERATIONS

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     This act would limit the amount of recovery by a person or entity who purchases

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revolving loans or credit card debt.

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     This act would take effect upon passage.

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LC00724

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