Taking a Bite Out of Payday Predators in Rhode Island
36% rate cap legislation gaining momentum
Rhode Island appears to be on the verge of delivering a big win for consumers - and taking a bite out of payday predators.
More from the Rhode Island Current:
The Rhode Island House of Representatives unanimously approved legislation Monday that would cap the annual percentage rate for short-term, small-dollar loans at 36% — compared with the up-to-260% APR that deferred deposit providers can charge now. Meanwhile, the Senate Committee on Commerce is poised to advance a similar proposal Tuesday, setting the stage for the bill’s forthcoming debut on the Senate floor: the first time in its 15-year history.
It’s not a done deal yet — both chambers must still approve the legislation, along with a signature from Gov. Dan McKee, who supports it. But Quezada was confident that a majority of the upper chamber supported the repeal of predatory lending practices. Before its Monday vote, the House of Representatives had already signaled strong support, passing nearly identical legislation in 2023 in a sweeping 70-2 vote.
