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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 5331 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000161 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO FINANCIAL INSTITUTIONS -- CHECK CASHING |
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| 16 | 16 | | Introduced By: Representatives J. Lombardi, Hull, Ajello, McGaw, Kislak, Tanzi, Felix, |
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| 17 | 17 | | Morales, Batista, and Potter |
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| 18 | 18 | | Date Introduced: February 03, 2023 |
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| 19 | 19 | | Referred To: House Corporations |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 19-14.4-5.1 of the General Laws in Chapter 19-14.4 entitled "Check 1 |
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| 24 | 24 | | Cashing" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 19-14.4-5.1. Customer checks — Deferred deposits. 3 |
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| 26 | 26 | | (a) A check casher may defer the deposit of a personal check written by a customer for a 4 |
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| 27 | 27 | | term of no less than thirteen (13) days, pursuant to the provisions of this section. The face amount 5 |
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| 28 | 28 | | of the check shall not exceed five hundred dollars ($500). 6 |
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| 29 | 29 | | (b) Each deferred deposit shall be made pursuant to a written agreement that has been 7 |
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| 30 | 30 | | signed by the customer and by the check casher or an authorized representative of the check casher. 8 |
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| 31 | 31 | | The written agreement shall contain a statement of the total amount of any fees charged for the 9 |
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| 32 | 32 | | deferred deposit, expressed both in United States currency and as an annual percentage rate (APR), 10 |
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| 33 | 33 | | as required by federal regulations. The written agreement shall authorize the check casher to defer 11 |
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| 34 | 34 | | deposit of the personal check until a specific date no less than thirteen (13) days from the date the 12 |
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| 35 | 35 | | written agreement was signed and executed. The written agreement shall not permit the check 13 |
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| 36 | 36 | | casher to accept collateral. 14 |
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| 37 | 37 | | (c) Notwithstanding any provision of the general laws to the contrary, all "payday loans", 15 |
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| 38 | 38 | | "payday advances" or "deferred presentment loans", as defined in § 19-14-1: 16 |
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| 39 | 39 | | (1) Shall have an annual percentage rate (APR) of no more than twenty-eight percent (28%) 17 |
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| 40 | 40 | | per annum; 18 |
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| 41 | 41 | | (2) Shall have a maturity date of more than ninety (90) days from the date on which the 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC000161 - Page 2 of 3 |
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| 45 | 45 | | loan closed; 1 |
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| 46 | 46 | | (3) Shall not have fees and interest that exceeds sixty percent (60%) of the loan's original 2 |
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| 47 | 47 | | principal; and 3 |
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| 48 | 48 | | (4) Shall be repayable in monthly increments with each monthly payment being no more 4 |
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| 49 | 49 | | than twenty-five percent (25%) of the loan's original principal. 5 |
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| 50 | 50 | | (c)(d) A rollover is an extension or deferral of the payment due date of a deferred deposit 6 |
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| 51 | 51 | | transaction for the payment of only an additional fee. 7 |
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| 52 | 52 | | (d)(e) The maximum amount of a single customer’s check is five hundred dollars ($500). 8 |
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| 53 | 53 | | (e)(f) The maximum aggregate amount of concurrently outstanding checks held by the 9 |
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| 54 | 54 | | licensee or its affiliate from the same customer is five hundred dollars ($500). 10 |
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| 55 | 55 | | (f)(g) The maximum number of concurrently outstanding checks held by the licensee or its 11 |
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| 56 | 56 | | affiliates from the same customer is three (3). 12 |
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| 57 | 57 | | (g)(h) The maximum number of rollovers permitted is one. 13 |
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| 58 | 58 | | (h)(i) The check casher shall give a duplicate original of the agreement to the customer at 14 |
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| 59 | 59 | | the time of the transaction. 15 |
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| 60 | 60 | | SECTION 2. This act shall take effect upon passage. 16 |
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| 61 | 61 | | ======== |
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| 62 | 62 | | LC000161 |
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| 63 | 63 | | ======== |
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| 64 | 64 | | |
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| 65 | 65 | | |
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| 66 | 66 | | LC000161 - Page 3 of 3 |
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| 67 | 67 | | EXPLANATION |
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| 68 | 68 | | BY THE LEGISLATIVE COUNCIL |
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| 69 | 69 | | OF |
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| 70 | 70 | | A N A C T |
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| 71 | 71 | | RELATING TO FINANCIAL INSTITUTIONS -- CHECK CASHING |
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| 72 | 72 | | *** |
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| 73 | 73 | | This act would cap the annual percentage rate (APR) for payday loans to twenty-eight 1 |
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| 74 | 74 | | percent (28%); require a maturity date of more than ninety days (90) from loan closing; prohibit 2 |
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| 75 | 75 | | fees and interest payments of more than sixty percent (60%) of the principal loan amount; and 3 |
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| 76 | 76 | | require that payments be made monthly, with each payment being no more than twenty-five percent 4 |
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| 77 | 77 | | (25%) of the loan's original principal. 5 |
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| 78 | 78 | | This act would take effect upon passage. 6 |
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| 79 | 79 | | ======== |
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| 80 | 80 | | LC000161 |
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| 81 | 81 | | ======== |
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