The proposed bill amends Rhode Island's laws regarding interest and usury by introducing a new section that allows the state to opt out of certain provisions of the Federal Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). Specifically, it rejects the amendments made by sections 521 through 523 of DIDMCA concerning loans made within the state, thereby ensuring that financial institutions chartered in other states cannot circumvent Rhode Island's interest rate limits. This change aims to protect consumers from potentially predatory lending practices that could arise from out-of-state lenders exploiting these federal provisions.

Additionally, the bill establishes the "Anti-Evasion of Lending Rules Act of 2025," which outlines strict prohibitions against evading Rhode Island's lending rules and interest rate limits. It defines various deceptive practices that would be considered violations, such as disguising loans as sales or using other subterfuges to evade regulations. The act also clarifies that individuals or entities acting as agents or service providers for exempt lenders can still be held accountable as lenders if they maintain a significant economic interest in the loans. Violations of this act would render loans void and uncollectible, allowing borrowers to seek restitution and damages. The bill is set to take effect on October 1, 2025.