The bill, SB 229, repeals the provisions of the general laws that allow deferred deposit providers, commonly known as "payday lenders." It introduces a new section titled "Definitions" in Section 19-14-1, which removes the definition of "deferred-deposit transaction" that previously encompassed payday loans and similar financial transactions.

Additionally, the bill establishes new language in Section 19-14.1-10 regarding special exemptions from licensing requirements for certain entities, including nonprofit organizations and individuals making fewer than six loans annually. It also introduces a new section, 19-14.2-1, which prohibits deceptive practices to evade the requirements of the chapter, including disguising loans as personal property sales or cash rebates.

The bill includes provisions in Section 19-14.4-4 that cap check cashing fees and mandates clear posting of charges. It also introduces a new section, 19-14.4-5.1, which outlines the conditions under which a check casher may defer the deposit of a personal check.

Overall, the act effectively bans payday lending in the state and is set to take effect on January 1, 2027.

Statutes affected:
229: 19-14-1, 19-14.1-10, 19-14.2-1, 19-14.4-5.1
229  SUB A: 19-14-1, 19-14.1-10, 19-14.2-1, 19-14.4-5.1