The bill amends Rhode Island's laws regarding interest and usury by adding 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 expressly rejects the application of the amendments made by sections 521 through 523 of DIDMCA concerning loans made within the state, ensuring that financial institutions chartered in other states cannot evade Rhode Island's interest rate limits.

Additionally, the bill introduces the "Anti-Evasion of Lending Rules Act of 2025," which establishes strict prohibitions against any attempts to circumvent Rhode Island's lending rules and interest rate limits. It outlines various deceptive practices that would be considered violations, such as disguising loans as sales or rebates, and prohibits any device, subterfuge, or pretense to evade the requirements of the state's lending laws.

The legislation clarifies that individuals or entities that facilitate loans exceeding the state's interest rate limits will be treated as lenders, regardless of their stated role, if they hold the predominant economic interest in the loan or engage in activities related to the loan. Violations of this act would render loans void and uncollectible, and violators would be liable for damages, including actual and consequential damages, statutory damages, and reasonable attorneys' fees. The act is set to take effect on October 1, 2025.