The bill amends Section 19-14-1 of the General Laws in Chapter 19-14, titled "Licensed Activities," by introducing new definitions and removing outdated terms, particularly eliminating the term "deferred-deposit transaction," which previously referred to payday loans. In its place, the bill clarifies definitions related to financial transactions, including "check," "check casher," "currency transmission," and "loan," while emphasizing the roles and responsibilities of licensees. The updated definition of "loan" now encompasses various forms of credit and financial agreements, excluding references to payday loans, thereby modernizing the legal language to align with current financial practices and technologies.

Additionally, the bill introduces new definitions such as "virtual currency," "natural person employee," and "negative equity," while establishing exemptions from licensing requirements for certain entities, including nonprofit organizations and individuals making fewer than six loans annually. It sets a maximum interest rate for small loans of $5,000 or less, prohibits deceptive practices, and outlines penalties for violations. The bill also regulates check cashing services by allowing fees to be charged, capping them at five percent of the check's face amount or five dollars, and mandates that licensed check cashers post fee schedules and provide transaction receipts. Overall, these amendments aim to enhance consumer protection and improve regulatory oversight within the financial services sector in Rhode Island.

Statutes affected:
5042: 19-14-1, 19-14.1-10, 19-14.2-1, 19-14.4-5.1