The Consumer Federation of America submitted this letter to the Rhode Island General Assembly in support of S-2275 and H-7941, ““An Act Relating to Commercial Law, General Regulatory Provisions, Interest and Usury: Election of State Opt-Out.”

These companion bills would direct the state to opt out of interest rate exportation by state-chartered banks, as permitted by Sections 521 to 523 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). CFA supports this legislation because it will prevent high-cost non-bank lenders from making loans through partnerships with banks located in states with permissive interest rate laws.