Which law prohibits loan flipping as an unethical practice?

The Rhode Island General Laws specifically address various consumer protection issues, including predatory lending practices such as loan flipping. Loan flipping occurs when a borrower is induced to refinance a loan repeatedly, often with little benefit and at significant cost, which can lead to increased debt and financial hardship for the borrower. This practice is viewed as unethical and harmful, particularly in the context of vulnerable consumers.

The Rhode Island General Laws incorporate regulations that help safeguard borrowers from such predatory practices by establishing clear standards and prohibitions. These laws set forth requirements for transparency in lending, ensuring that consumers are fully informed about the terms and consequences of their loans, which directly counteracts the tactics involved in loan flipping.

In contrast, while the Consumer Financial Protection Act, the Truth in Lending Act, and the Equal Credit Opportunity Act address various aspects of consumer protection in lending, they do not specifically target loan flipping in the same comprehensive manner as the Rhode Island General Laws. Thus, the correct answer is rooted in the state-specific regulations that are designed to protect consumers from unethical lending practices like loan flipping.