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Committee holds measure to license small private lenders after survivor testimony
Summary
Senate Bill 83, which would remove a licensing exemption for lenders that originate fewer than six loans in 12 months, received emotional testimony from a borrower alleging predatory practices; the committee voted to hold the bill for further review.
Senate Bill 83, which would remove a licensing exemption for lenders that originate fewer than six loans in 12 consecutive months, was the subject of testimony March 25 and was held by the Senate Commerce Committee after supporters described predatory practices by unlicensed private lenders.
Sponsor Senator Repetakis explained the bill’s aim: to require licensing of private lenders who currently fall below an exemption threshold. Witness Randy Burke testified in support and described personal experience with a private lender he said took family property after loans were signed without legal representation. "They took everything — their property, their land, everything," Burke said, describing multiple cases he had observed. He told senators he had a pending court case with a summary-judgment hearing scheduled and argued the state should provide oversight so aggrieved borrowers could seek remedies through the Department of Business Regulation (DBR).
Lynette Forte Menard of the Rhode Island Mortgage Bankers Association submitted written testimony in support. Senator Sadowski moved to hold the bill to allow follow-up with the sponsor and DBR about whether other states have similar exemptions and to allow questioning if the sponsor appears.
The committee recorded the motion to hold as carried; no numeric roll-call was announced in the hearing transcript. Senators who supported holding the bill cited the need to compare other states’ approaches and to let the sponsor and DBR respond to technical questions.
Votes at the committee session: motion to hold S 83 was made and recorded as carried; no numeric roll-call tally was announced in the hearing transcript.
