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 also modifies the definition of "loan" to include educational loans while excluding payday loans.

Additionally, it amends Section 19-14.1-10 in Chapter 19-14.1, which pertains to "Lenders and Loan Brokers," by inserting a new section on "Special exemptions" for certain entities, including nonprofit organizations and individuals making fewer than six loans annually. The bill repeals the licensing requirement for individuals engaging in deferred deposit transactions if they hold a valid check-cashing license.

Furthermore, it establishes a maximum interest rate for small loans of $5,000 or less, prohibits deceptive practices, and revises the fee structure for check cashing services. The act 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