2026 -- H 7724

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LC004648

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

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:

     SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2

entitled "Small Loan Lenders" are hereby amended to read as follows:

     19-14.2-8. Maximum loan and interest rate.

     (a) Every small loan lender may lend up to five thousand dollars ($5,000) in the aggregate

to one borrower and may charge, contract for, and receive on the loan interest on the unpaid

principal balance on a loan at a rate not exceeding the following:

     (1) Loans up to and including three hundred dollars ($300), three percent (3%) per month;

     (2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars

($800), two and one-half percent (2.5%) per month; and

     (3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand dollars

($5,000), two percent (2%) per month ninety-nine percent (99%) per annum, inclusive of any

origination and closing fee.

     (b) Origination fees shall not be more than ten percent (10%) of the original loan amount.

     (c) Closing fees shall not be more than four percent (4%) of the original loan amount.

     (d) In addition to any other fees permitted in this chapter, the following fees shall be agreed

to in writing between borrower and lender and are not included in the annual interest rate:

     (1) A late payment fee in the amount of five percent (5%) of the delinquent payment or

eighteen dollars ($18.00), whichever is greater; and

     (2) A returned payment fee up to thirty dollars ($30.00).

     19-14.2-12. Small loans — No other charges — Exception.

     In addition to the interest and fees allowed in this chapter, no small loan licensee shall

directly, or indirectly, charge, contract for, or receive any other charges except credit insurance,

lawful filing fees and insurance charges, and other fees listed in § 6-26-2(c) or as authorized by

regulation.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS

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     This act would establish a maximum per annum rate of interest on small loans at ninety-

nine percent (99%) and limit the amounts of origination and closing fees. This act would also

require that late fees and returned payment fees be agreed to in writing between borrower and

lender.

     This act would take effect upon passage.

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