Rhode Island 2026 Regular Session

Rhode Island House Bill H7868

Introduced
2/27/26  

Caption

Allows a lender to charge an origination fee, increase interest rates and collect a monthly service fee, on loans up to three hundred dollars ($300) but not exceeding five thousand dollars ($5,000).

Impact

The proposed amendments in HB H7868 could significantly impact state laws governing financial institutions and consumer lending. By enabling lenders to increase interest rates and apply additional fees, the bill aligns with the objectives of easing restrictions on small loan lenders. Supporters of the bill argue that these changes could enhance lending opportunities for individuals who may not qualify for traditional credit, thus providing greater access to financial resources. However, this could also lead to increased debt burden for low-income borrowers who rely on such loans for urgent financial needs.

Summary

House Bill H7868 aims to amend regulations related to small loan lenders. Specifically, it would allow lenders to charge an origination fee and adjust the maximum allowable interest rates for small loans. The bill proposes a maximum loan amount for borrowers of $5,000, with interest rates varying based on the loan amount, ranging from a maximum of 3% to 5% per month. Additionally, lenders would be permitted to impose a monthly service fee based on the total amount of the loan, which could influence the overall cost of borrowing for consumers.

Contention

Despite its potential benefits, there is a notable contention surrounding HB H7868. Critics argue that raising interest rates and allowing various fees could exploit vulnerable populations who depend on small loans. There are concerns that lenders might take advantage of their ability to impose higher costs, leading to cycles of debt that negatively affect borrowers' financial stability. This debate highlights a critical ongoing discussion about balancing the need for accessible lending with protections against predatory lending practices.

Companion Bills

No companion bills found.

Previously Filed As

RI S0783

Increases the threshold limit for charitable organizations with an annual gross income of five hundred thousand dollars ($500,000) to one million dollars ($1,000,000) or more.

RI S0096

Increases the personal needs allowance of nursing facility residents from seventy-five dollars ($75.00) to one hundred dollars ($100) per month.

RI H5466

Increases the personal needs allowance of nursing facility residents from seventy-five dollars ($75.00) to one hundred dollars ($100) per month.

RI H5218

Increases insurance coverage for hearing aids from one thousand five hundred dollars ($1,500) to one thousand seven hundred fifty dollars ($1,750), per ear, for all people regardless of age effective January 1, 2026.

RI S0120

Increases insurance coverage for hearing aids from one thousand five hundred dollars ($1,500) to one thousand seven hundred fifty dollars ($1,750), per ear, for all people regardless of age effective January 1, 2026.

RI H6257

Provides for an additional real estate conveyance tax for commercial properties sold in excess of one million five hundred thousand dollars ($1,500,000) at a rate of three dollars and thirteen cents ($3.13) for each five hundred dollars.

RI S0027

Increases the income range up to fifty thousand dollars ($50,000) and tax credit up to eight hundred fifty dollars ($850), for elderly and disabled persons who own or rent their homes.

RI H5309

Increases the minimum veterans’ exemption from one thousand dollars ($1,000) to six thousand dollars ($6,000) with respect to municipal taxes.

RI H5053

Raises the amount of life insurance the state provides at no charge to Rhode Island National Guard members called up for federal duty to five hundred thousand dollars ($500,000).

RI S0029

Raises the amount of life insurance the state provides at no charge to Rhode Island National Guard members called up for federal duty to five hundred thousand dollars ($500,000).

Similar Bills

No similar bills found.