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 specifies that any loan made in the state, regardless of the medium used or the lender's physical presence, is subject to state regulations. The act outlines specific actions that constitute evasion of lending rules, including disguising loans as other types of transactions and obscuring the nature of the loan.

If a loan exceeds the permitted rates, the person involved will still be considered a lender and subject to the requirements of this chapter, even if they claim to act in another capacity. Violations of this act will render loans void and uncollectible, and borrowers will be entitled to restitution of any amounts paid, along with potential damages, statutory damages, and reasonable attorneys' fees. The act is set to take effect on October 1, 2025.