Rhode Island Payday Loans

R.I. Stat. Ann. 19-14.4-1 et seq.
Status: Legal (Applies to check cashers only)

Payday loans are legal in the state of Rhode Island, pursuant to R.I. Stat. Ann. 19-14.4-1 et seq. As of January 2017, the approximate number of companies offering payday loans in Rhode Island currently stands at 48.

Payday Loan Lending Laws in Rhode Island

The maximum amount of a single loan request in the state of Rhode Island currently stands at $500 per loan account, which must be repaid within a minimum of 13 days. Lenders can charge 260% of APR and an additional finance charge of $10 on every $100 of loan issued for a 14-day period. Collection fees and charges for nonsufficient funds have not specified, so a potential borrower should verify that information with a lender before agreeing to the loan terms.

Rhode Island payday loans are unique in that a borrower can have up to three separate payday loans out at one time, although no single loan can exceed the $500 maximum as listed above. As in other states that allow the practice, multiple loans represent the biggest advantage and the largest concern with payday loan practices. As an advantage, the ability to take out a total of $1,500 from three lenders gives a borrower a larger financial option to deal with short-term financial emergencies. However, as the loans will have to be paid back in a relatively short time, the three-loan policy also represents the biggest disadvantage for these loans in that a borrower can fall into a debt cycle trying to pay back the loans in the agreed-upon time frame. However, the state does allow delinquent loans to be renewed or rolled over once, which can grant the borrower a chance to renegotiate the repayment time table if difficulties arise at the cost of paying interest on the extended time period at the same high rate.

Finally, should a borrower become delinquent on repaying the cash advance loan, they should keep in mind the Rhode Island payday loan laws have not specified whether criminal actions can be taken against borrowers for non-payment of debt are not. As such, the borrower should take pains to understand everything they can about the loan agreement and to maintain contact with the lender should they fall behind in repaying the loan. It is important to remember that short term loans, like any other financial agreement, have to be repaid at some point, and while most lenders might not want to seek repayment through criminal charges, they do have the option of doing so.

Lending Rules*

Lenders in the state of Rhode Island are legally required to comply by the following limitations according to R.I. Stat. Ann. 19-14.4-1 et seq.:

Small Loan Rate Cap:
Minimum Length of Loan:
13 days
Maximum Finance Rate & Fees:
Finance Charge for 14-day $100 Loan:
APR for 14-day $100 Loan:
Max # Outstanding Loans at One Time:
Rollovers Permitted:
One (rollover)
Collection Fees:
Not Specified
Criminal Action:
Not Specified
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/47.

Regulatory Information

If you have a complaint against a Rhode Island Cash Advance location you can contact your state regulator below:

Rhode Island Department of Business Regulation
1511 Pontiac Ave, Cranston, RI 02920
(401) 462-9500
(401) 462-9532

Rhode Island Lenders

Below you can find Rhode Island payday loan lenders in the following cities:

Rhode Island Statistics**

The following information is key demographic data for the state of Rhode Island from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

By design, payday loans cannot be used for long-term financial planning or for anything other than short-term financial emergencies. Cash advance loans work best when the funds can be used to address those emergencies immediately and then be repaid in a short time. The responsibility for understanding how they work and what the terms of a payday loan agreement mean rests solely with the borrower. While the current state regulations can provide some aid with keeping delinquent borrowers from falling into a debt cycle, they cannot protect the potential borrower from being irresponsible with the loans. Information and understanding will serve the potential borrower best, and they should take the necessary time to learn everything they can before committing to a payday loan.

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