The bill, HB 5042, repeals the provisions of the general laws that allow deferred deposit providers, commonly known as "payday lenders." It introduces new definitions relevant to financial transactions in Section 19-14-1, including terms such as "bona fide employee," "check," "check casher," and "currency transmission," while removing the definition of "deferred-deposit transaction," which previously included payday loans.

Additionally, the bill amends Section 19-14.1-10 to outline special exemptions for certain entities, although specific details of these exemptions are not provided. It establishes new sections that set a maximum interest rate for small loans of $5,000 or less and prohibits deceptive practices aimed at evading these regulations. The bill also modifies check cashing regulations, including limits on fees and requirements for posting fee schedules.

Overall, the act aims to enhance consumer protection by regulating lending practices and ensuring transparency in fees associated with check cashing. The act is set to take effect on January 1, 2027.

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