The following definitions shall be for purposes of this chapter only, unless specifically adopted by another section of the Cranston Municipal Code for use therein.
"Business entity"
shall mean any foreign (state or commonwealth) or domestic legally cognizable business so formed according to law and registered with the Rhode Island Department of State.
"Consumer short-term lender"
shall mean an individual or business entity engaged in the business of making or arranging short-term loans, other than a state or federally chartered bank, savings bank, or credit union.
"Consumer short-term loan"
shall mean a loan to a borrower which has a principal amount, or an advance on a credit limit, of five-hundred dollars ($500.00) or less and requires a minimum repayment within sixty (60) days of loan origination or credit advance of more than twenty-five (25) percent of the principal balance or credit advance. For the purposes of this section, each new advance of money to a borrower under a short-term loan agreement constitutes a new short-term loan.
"Interested owner"
shall mean an individual or business entity with ownership interest in a licensed consumer short-term lender business. This includes but is not limited to direct owners, subsidiaries, and affiliates of the applicant and/or licensee.
(Ord. 2024-2, § 1, 2/26/2024)
No individual or business entity shall operate, maintain, or otherwise engage in business as a consumer short-term lender without first obtaining a license to do so as provided in this chapter.
(Ord. 2024-2, § 1, 2/26/2024)
A. 
Any individual desiring to operate, maintain, or engage in business as a consumer short-term lender shall make their verified application in writing to the city clerk upon such forms as the council from time to time shall require. The application set forth, in addition to other information as may be required by the council, must include the following:
1. 
The name, address, mailing address, telephone number, facsimile number, and email of the applicant.
2. 
The business or trade name, street address, mailing address, telephone number, facsimile number, of the consumer short-term lender.
3. 
A copy of a current, valid state license held by the consumer short-term lender pursuant to R.I. Gen. Laws § 19-14.4-2(d).
4. 
Each application shall also be accompanied by a certified check, money order, cashier's check, or electronic payment in an amount equal to the annual license fee for one year.
B. 
The applicant shall be bound by all of the answers and information furnished on the application presented to the city, and any falsification of information requested on said application, or any falsification of any additional information requested by the city in its course of investigation of the applicants, shall be grounds for denial or revocation of said license.
(Ord. 2024-2, § 1, 2/26/2024)
A license issued for the operation of a business as a consumer short-term lender shall be issued for a period of one year and expire on December 31st of each year. The applicant shall pay in advance the fee as established by the city's fee schedule. Such license may thereafter be renewed annually by approval of the city council.
(Ord. 2024-2, § 1, 2/26/2024)
A consumer short-term lender shall make no more than two loans of five hundred dollars ($500.00) or less per person per calendar year.
A consumer short-term loan requires a minimum repayment within sixty (60) days of loan origination.
A consumer short-term lender must furnish a copy of the written loan contract to each borrower. The contract and disclosures must contain an itemization of all fees and charges to be paid by the borrower.
For consumer short-term loans between $0.00—$500.00, consumer short-term lenders may charge a fee of no more than ten (10) percent of the amount of the loan, as pursuant to R.I. Gen. Laws § 19-14.4-4(4).
A consumer short-term lender shall not extend repayment periods for consumer short-term loans on more than one occasion on any original short-term loan amount. If a consumer short-term lender grants additional time to repay a consumer short-term loan, in no event shall the consumer short-term lender charge an additional fee for the extension or increase the balance owed above the original amount.
At no time shall there be more than four consumer short-term loan businesses located within the city.
Any licensed issued by the city shall be binding upon all interested owners of the consumer short-term lender business. An interested owner is prohibited from obtaining an additional license for a separate consumer short-term lender business.
(Ord. 2024-2, § 1, 2/26/2024)
A. 
A consumer short-term lender must file an annual report with the city clerk that is due no later than the date on which the lender files its renewal application and no later than January 30th of the subsequent calendar year. The annual report shall contain the following information and be in the form of a verified, sworn statement from the owner's managing principal:
1. 
The total number of consumer short-term loans issued per calendar year.
2. 
The total dollar amount, over and above principal, collected on the loans.
3. 
The average effective annual percentage rate and range of effective annual percentage rates.
4. 
The state of origin of the lender's borrowers.
(Ord. 2024-2, § 1, 2/26/2024)
A. 
The city clerk shall be empowered upon and subsequent to city council approval to issue licenses to an individual or business entity engaged in business as a consumer short-term lender.
B. 
Grounds for denying the issuance of or renewal of a license include, but are not limited to, the following:
1. 
The applicant is under the age of eighteen (18) years old.
2. 
The applicant has been adjudged to have violated or convicted, within the past five years, any violation of any local ordinance or regulation or of any criminal violation of federal, state, or local law; or if the applicant has had a license to operate a business as a consumer short-term lender suspended or revoked within the preceding twelve (12) months of the date of the application within any state or commonwealth of the United States.
3. 
The applicant fails to provide any of the information required on the application or provides false/misleading information.
4. 
The applicant is prohibited by federal, state, or local laws, ordinances, or other regulation from holding a license.
C. 
If a license is mistakenly issued or renewed to or by an individual or business entity, it shall be revoked upon discovery that the individual or business entity was ineligible for the license under this article.
D. 
The council, acting upon reasonable grounds, may suspend or revoke any license to operate a business as a consumer short-term lender, as defined in this article.
(Ord. 2024-2, § 1, 2/26/2024)
A conviction of any individual or business entity holding a license to operate a business as a consumer short-term lender for a violation of this article or any crime related to this occupation by federal, state, or local laws shall be grounds for immediate revocation of this license under the provisions of the Code of Ordinances. They may levy fines in addition to the revocation or suspension of the licensee.
(Ord. 2024-2, § 1, 2/26/2024)