Maximum rate of interest allowed to be charged in the state of Rhode Island is dealt with in Section 6-26-2 under Title 6 of Chapter 26 of General Laws of Rhode Island. Pursuant to Section 6-26-2, no person, partnership, association, or corporation loaning money should charge or take interest on a loan at a rate not exceeding twenty one percent (21 %) per annum. Where there is no express agreement regarding the rate of interest between the parties, then the lawful rate of interest is computed at the rate of twelve dollars on one hundred dollars for one year, according to Section 6-26-1.
It is unlawful to charge any rate, other than the lawfully allowed, either willingly or knowingly by any person, partnership, corporation, or association. Such persons will be guilty of criminal usury and will be imprisoned for not more than five years, under Section 6-26-3
Pursuant to Section 6-26-4, any regulated financial institution knowingly contracting or charging a usurious rate of interest will forfeit the entire interest on the debt. In case the usurious rate of interest has been paid, the person who paid or his/her legal representative, can recover from the regulated financial institution, twice the amount of the interest so paid. Pursuant to Section 9-21-10 of Title 9, Chapter 21, the maximum lawful rate of interest on judgments is twelve percent (12 %). This rate does not apply where parties agreed upon a contract for the rate.
According to Section 19-26-18 of Title 19, Chapter 26, Pawnbrokers are exempted from the usury limits in the state. Furthermore, under Section 6-26-2, any duly licensed pawnbrokers can charge, receive or take interest on a loan at a greater rate of interest than twenty one percent (21 %). Pursuant to Section 6-27-4, finance charge for retail sales and revolving or open-end credit plans are exempted from the usury limits.
R.I. Gen. Laws § 6-26-2
Maximum rate of interest
(a) Subject to the provisions of title 19, no person, partnership, association, or corporation loaning money to or negotiating the loan of money for another, except duly licensed pawnbrokers, shall, directly or indirectly, reserve, charge, or take interest on a loan, whether before or after maturity, at a rate which shall exceed the greater of twenty-one percent (21%) per annum or the alternate rate specified in subsection (b) of this section of the unpaid principal balance of the net proceeds of the loan not compounded, nor taken in advance, nor added on to the amount of the loan.
****
R.I. Gen. Laws § 6-26-1
Legal rate of interest — Post judgment interest
Post judgment interest on any judgment, and interest in all business transactions where interest is secured or paid, shall be computed at the rate of twelve dollars ($ 12.00) on one hundred dollars ($ 100) for one year, unless a different rate is expressly stipulated.
R.I. Gen. Laws § 6-26-3
Criminal usury
Any person, who, on his or her own behalf or on behalf of any other person, partnership, corporation, or association, shall willfully and knowingly violate any of the provisions of § 6-26-2, shall be guilty of criminal usury and shall be imprisoned for not more than five (5) years.
R.I. Gen. Laws § 6-26-4
Usurious contracts — Penalty
(a) Every contract made in violation of any of the provisions of § 6-26-2, and every mortgage, pledge, deposit, or assignment made or given as security for the performance of the contract, shall be usurious and void.
(b) Nothing contained in this section shall affect the rights of an indorsee or transferee of a negotiable instrument, who purchases the instrument before maturity, for value, and without notice of its usurious character.
(c) Nothing contained in this section shall affect the rights, duties or liabilities of any persons acting under the provisions of title 19, and if the borrower shall, either before or after suit, make any payment on the contract, either of principal or interest, or of any part of either, and whether to the lender or to any assignee, indorsee, or transferee of the contract, the borrower shall be entitled to recover from the lender the amount so paid in an action of the case. Receipts shall be given whenever payments are made of either principal or interest.
****
R.I. Gen. Laws § 9-21-10
Interest in civil actions
(a) In any civil action in which a verdict is rendered or a decision made for pecuniary damages, there shall be added by the clerk of the court to the amount of damages interest at the rate of twelve percent (12%) per annum thereon from the date the cause of action accrued, which shall be included in the judgment entered therein. Post-judgment interest shall be calculated at the rate of twelve percent (12%) per annum and accrue on both the principal amount of the judgment and the prejudgment interest entered therein. This section shall not apply until entry of judgment or to any contractual obligation where interest is already provided.
****
R.I. Gen. Laws § 19-26-18
Maximum charges
Pawnbrokers are prohibited from charging, taking, or receiving, directly or indirectly, for the use of money lent on personal property, any more than the following rates of interest: for the use of money exceeding fifty dollars ($ 50.00) in amount for a period not exceeding three (3) months, five percent (5%) per month; for a period of time exceeding three (3) months, two and one-half percent (2.5%) per month; for the use of money exceeding fifty dollars ($ 50.00) in amount for any period of time, two and one-half percent (2.5%) per month; provided, that when the interest allowed by this section would amount to less than fifty cents (50 cent(s) ), a minimum charge of fifty cents (50 cent(s) ) per month shall be allowed under the provisions of this chapter; and, provided, further, that no charge for the keeping or storage of any article taken in pawn or pledge by any pawnbroker, under the provisions of this chapter, other than is provided in this section shall be permitted. Any person violating the provisions of this section shall be fined not exceeding five hundred dollars ($ 500) and his or her license shall become void.
R.I. Gen. Laws § 6-27-4
Maximum charge — Refunds
(a) No creditor shall impose a finance charge in excess of an amount equal to eighteen percent (18%) simple interest per annum. This subsection shall not apply to any transaction in connection with which the finance charge does not exceed ten dollars ($ 10.00). Notwithstanding the provision of any retail installment contract to the contrary, a buyer may prepay in full the unpaid balance of any retail installment contract at any time before its final due date and, if the buyer does so, shall receive a refund credit on the retail installment contract for the prepayment. The amount of the refund credit of finance charges on precomputed loans, made for an original term of sixty (60) months or less, may be calculated on the method commonly referred to as the rule of 78’s or sum of the digits. Refund credits of finance charges on precomputed loans, made for an original term greater than sixty (60) months, must be at least the amount as that produced by the rule of anticipation.
****