Shown verbatim: the complete text as captured from the official PDF posted by the Rhode Island General Assembly, fetched 2026-07-29. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
H8243 2026 -- H 8243 ======== LC005933 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ 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: 1 SECTION 1. Section 6-13.1-28 of the General Laws in Chapter 6-13.1 entitled Deceptive 2 Trade Practices is hereby amended to read as follows: 3 6-13.1-28. Financing of motor vehicles — Term and rate of interest prominently 4 displayed. 5 (a) Any contract to finance the sale of a motor vehicle shall prominently display the term 6 and rate of interest. 7 (b) The borrower’s initials or signature shall appear immediately adjacent to the term and 8 to the rate of interest on the loan agreement that shall only serve as an acknowledgement that the 9 borrower has been informed of the terms and rate. The borrower shall also be required to separately 10 sign the loan agreement to bind himself or herself to the contract. 11 (c) No contract to finance the lease of a motor vehicle shall use the term down payment , 12 money down , or any similar language to describe lump sum payments made at the time of 13 financing to reduce monthly lease payments. The lessee shall be provided and required to 14 acknowledge a plain language disclosure in at least eleven (11) point font that any lump sum money 15 paid at the time of financing will not be returned if the vehicle is involved in an incident and 16 determined to be a total loss, regardless of the circumstances. 17 (c) (d) Any agreement to finance a motor vehicle that does not comply with the provision 18 of this section shall be voidable within thirty (30) days at the option of the borrower; provided, 1 however, the borrower shall be responsible for any damage to the vehicle. 2 SECTION 2. This act shall take effect upon passage. ======== LC005933 ======== LC005933 - Page 2 of 3 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES *** 1 This act would prohibit leasing disclosures to use terms such as, down payment , money 2 down , or any similar language to describe lump sum payments made to reduce monthly lease 3 payments. This act would provide that the lessee be notified that, in the event of a total loss of the 4 motor vehicle, any lump sum payments made are non-refundable, regardless of the circumstances. 5 This act would take effect upon passage. ======== LC005933 ======== LC005933 - Page 3 of 3
Every fact on this page links to its source, starting with the official bill record.