The proposed bill, SB 386, amends Rhode Island's laws regarding interest and usury by adding a new section that explicitly rejects the application of certain amendments of the Federal Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) concerning loans made within the state. This rejection aims to ensure that financial institutions chartered in other states do not evade Rhode Island's interest rate limits, thereby maintaining local regulatory standards for lending practices.

Additionally, the bill introduces the "Anti-Evasion of Lending Rules Act of 2025," which establishes clear prohibitions against various deceptive practices intended to circumvent Rhode Island's lending rules and interest rate limits. It outlines the responsibilities of lenders, regardless of how they present themselves, and includes provisions for penalties and restitution for borrowers in cases of violations. The act specifies that it applies to any loan made in the state through any medium, regardless of the lender's physical presence. It also includes detailed definitions of prohibited practices, the criteria for determining who qualifies as a lender, and the consequences for violations, including making loans void and uncollectible. The act is set to take effect on October 1, 2025.