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H8243
2026 -- H 8243
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LC005933
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --
DECEPTIVE TRADE PRACTICES
Introduced By:
Representative Brian C. Newberry
Date Introduced:
March 06, 2026
Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Section 6-13.1-28 of the General Laws in Chapter 6-13.1 entitled "Deceptive
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Trade Practices" is hereby amended to read as follows:
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6-13.1-28. Financing of motor vehicles — Term and rate of interest prominently
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displayed.
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(a) Any contract to finance the sale of a motor vehicle shall prominently display the term
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and rate of interest.
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(b) The borrower’s initials or signature shall appear immediately adjacent to the term and
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to the rate of interest on the loan agreement that shall only serve as an acknowledgement that the
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borrower has been informed of the terms and rate. The borrower shall also be required to separately
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sign the loan agreement to bind himself or herself to the contract.
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(c) No contract to finance the lease of a motor vehicle shall use the term "down payment",
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"money down", or any similar language to describe lump sum payments made at the time of
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financing to reduce monthly lease payments. The lessee shall be provided and required to
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acknowledge a plain language disclosure in at least eleven (11) point font that any lump sum money
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paid at the time of financing will not be returned if the vehicle is involved in an incident and
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determined to be a total loss, regardless of the circumstances.
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(c)
(d)
Any agreement to finance a motor vehicle that does not comply with the provision
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of this section shall be voidable within thirty (30) days at the option of the borrower; provided,
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however, the borrower shall be responsible for any damage to the vehicle.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --
DECEPTIVE TRADE PRACTICES
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This act would prohibit leasing disclosures to use terms such as, "down payment", "money
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down", or any similar language to describe lump sum payments made to reduce monthly lease
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payments. This act would provide that the lessee be notified that, in the event of a total loss of the
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motor vehicle, any lump sum payments made are non-refundable, regardless of the circumstances.
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This act would take effect upon passage.
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LC005933
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