The bill repeals the provisions of the general laws allowing 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. The bill modifies the definition of "loan" to include educational loans while explicitly excluding payday loans and similar transactions.

Additionally, it amends Section 19-14.1-10 regarding "Special exemptions," removing the requirement for a license to make or fund loans for individuals engaging in deferred deposit transactions while holding a valid license to cash checks. The bill establishes new regulations for lenders and loan brokers, including exemptions from licensing for nonprofit organizations, individuals making fewer than six loans annually, and licensed attorneys involved in loan closings. It also exempts loans to business entities and those exceeding $25,000 for commercial purposes from licensing requirements.

The legislation sets a maximum interest rate for small loans of $5,000 or less, prohibits deceptive practices to circumvent these regulations, and revises the fee structure for check cashing services. The bill is set to take effect on January 1, 2027, effectively ending payday lending in the state.

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