Rhode Island Payday Loans
Payday loans are legal in Rhode Island, which has enacted legislation governing cash advance businesses for the purpose of protecting both creditors and borrowers. Cash advance lenders must comply with Rhode Island's criminal usury or small loan laws. They are required to display in plain view at their stores a notice listing all their fees as well as a list of acceptable valid identifications. The written contract must state the total charges as well as the maximum finance charges and fees in the form of an annual percentage rate (APR) and dollar amount. The agreement must also set indicate the 14-day term limit. Borrowers cannot have more than three outstanding payday cash advance loans at one time, with a maximum aggregate amount of $500.
A borrower can request payday loan funds for an amount not exceeding $500.
The loan term is 13-14 days.
A borrower is allowed one extension or rollover.
A cash advance creditor can charge fees and finance charges not exceeding 15% of the loan amount. The finance fee for a two-week payday loan in the amount of $100 is $15.
The APR for a two-week loan in the amount of $100 is 390%.