| Payday Loans Legal? |
Yes |
| Legal Citation: |
R.I. Stat. Ann. §§ 19-14.4-1 and
19-14.4-4 et seq. as amended by 2005 RI Laws 05-230
(05-H6-3A) |
| Terms
of Payday Loans: |
-> Maximum Loan Amount = $500
-> Loan Term = Minimum 13 days
-> Maximum Finance Charge = 15
-> Finance Charge for 14 day $100 Loan =
$15
-> APR for 14 day $100 Payday Loan = 390% |
| Limits of Debt: |
-> Maximum # of Outstanding Loans: 3 / $500
-> # of Rollovers Allowed: 1
-> Repayment Plan :
-> Cooling-Off Period: |
| Debt Collection Limits: |
-> Collection Fees:Not specified
-> Criminal Action: Not allowed
|
| Where to Get Information? |
-> Regulator: Rhode Island Department
of Business Regulation (Visit
their Website)
Address: Division of Banking, 233 Richmond
Street, Suite 231 Providence RI 02903
Phone: (401) 222-2405
Fax: (401) 222-5628
Regulatory Contact: Dennis F. Ziroli, Assoc.
Director & Supt.
Important Links
-> Complaints
& Disputes
-> Download
Complaint Form (PDF)
-> Database
of Payday Loan Companies |
i) APR (Annual Percentage Rate):
The Annual Percentage Rate (APR)
is an interest rate that is different from the Finance
Charge. The APR was developed to gauge the "true
cost of borrowing a loan." The finance charge
is a mere interest rate e.g 8% that does not provide
a lot of useful information. However, the APR does.
Here are the components (finance charges) included
in APR:
-> Loan processing fees
-> Underwriting fees
-> Document preparation fees
-> Private mortgage insurance
-> Pre-Paid interest charges: The interest charged
from the date of closing a loan to the end of the
month (when payment is due).
-> Points - Discount & Origination Points
The following items are NOT included
in the Annual Percentage Rate (APR) calculation:
-> Title or abstract fee
-> Appraisal fee
-> Escrow fee
-> Attorney fee
-> Notary fee
-> Document preparation fees
-> Home inspection fees
-> Recording fees
-> Transfer taxes
-> Credit report look up fees
2) Cooling-Off Period
A Cooling-Off Period is when all
loan clients receive a 3 (three) business day cooling-off
period during which clients can change their mind
about the agreement and exit or cancel with only
a specified fee. A business day is any day that
is not a Saturday, Sunday or public holiday.
3) NSF Check (Non-Sufficient Funds)
An NSF check is when a check is
dishonored because the Payor does not have sufficient
funds in his/her bank account.
4) Loan Term
The loan term is the length of
time after which the loan is due. For example, if
the loan term is 30 days, the loan becomes due after
30 days of initial borrowing date. |
