Far too many families are facing financial challenges that might be mitigated or avoided through a greater understanding of personal finance. Payday lending exploits that lack of understanding.
This form of predatory lending very often entraps the borrower in a cycle of debt, and that burden will exacerbate existing financial difficulties.
Rhode Island is the only state in New England that allows the practice of payday lending and in 2006 Congress banned lenders from issuing payday loans to active duty service members of the military and their dependents, capping the rate at 36 percent.
Treasury is committed to developing alternatives that allow for responsible borrowing because access to fair, low cost financial products is critical to our state’s overall economic recovery.
To learn more, or to join the payday lending reform effort, visit the Rhode Island Pay Day Lending Reform Coalition.