R.I. Gen. Laws ch. 6-13.1 § 6-13.1-28
Financing of motor vehicles — Term and rate of interest prominently displayed
Operative Text
(a) Any contract to finance the sale of a motor vehicle shall prominently display the term and rate of interest. (b) The borrower's initials or signature shall appear immediately adjacent to the term and to the rate of interest on the loan agreement that shall only serve as an acknowledgement that the borrower has been informed of the terms and rate. The borrower shall also be required to separately sign the loan agreement to bind himself or herself to the contract. (c) Any agreement to finance a motor vehicle that does not comply with the provision of this section shall be voidable within thirty (30) days at the option of the borrower; provided, however, the borrower shall be responsible for any damage to the vehicle.
Under Rhode Island law (R.I. Gen. Laws § 6-13.1-28), any contract used to finance the purchase of a motor vehicle must clearly and prominently show the loan term and interest rate. The borrower must initial or sign directly next to those figures as an acknowledgment of awareness, and must also provide a separate signature to actually be bound by the agreement. If a financing contract fails to meet these requirements, the borrower has the option to void the agreement within 30 days, though the borrower remains responsible for any damage to the vehicle during that period.
Plain English — not legal advice.
This provision (R.I. Gen. Laws § 6-13.1-28) is primarily directed at motor vehicle financing rather than residential tenancy, but property owners or managers who offer vehicle financing arrangements as part of their operations should be aware of its requirements. A compliant financing agreement prominently displays the loan term and interest rate, captures the borrower's initials or signature adjacent to those figures as an acknowledgment, and obtains a separate binding signature on the contract. Failing to structure agreements this way exposes the financing party to the risk that the borrower may void the contract within 30 days of signing.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
R.I. Gen. Laws § 6-13.1-28 gives borrowers in motor vehicle financing transactions the right to see the loan term and interest rate displayed prominently in their contract, and to initial or sign next to those figures as confirmation they were informed. If a financing agreement does not include these disclosures or the required signatures, the borrower generally has the option to void the contract within 30 days, while still bearing responsibility for any vehicle damage. Borrowers who believe their financing agreement did not comply with this section may wish to review the contract carefully and consult a tenant-rights or consumer-rights organization for general information about available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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