Bill Text: IA HF591 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the calculation of finance charges for consumer loans pursuant to open-end credit.(Formerly HSB 192.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-15 - Referred to Judiciary. H.J. 965. [HF591 Detail]
Download: Iowa-2021-HF591-Introduced.html
House
File
591
-
Introduced
HOUSE
FILE
591
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HSB
192)
A
BILL
FOR
An
Act
relating
to
the
calculation
of
finance
charges
for
1
consumer
loans
pursuant
to
open-end
credit.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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591
Section
1.
Section
537.2402,
Code
2021,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
3.
As
an
alternative
to
the
charge
3
authorized
by
subsection
2,
and
not
in
addition
to
the
charge
4
authorized
by
subsection
2,
for
each
billing
cycle
a
charge
may
5
be
made
which
is
the
sum
of
the
charges
determined
by
applying
6
a
percentage
not
exceeding
the
percentage
provided
in
section
7
537.2403,
subsection
1,
to
the
actual
balance
of
the
open-end
8
account
on
each
day
in
the
billing
cycle
for
which
the
charge
9
is
made.
The
actual
balance
on
a
day
is
determined
by
adding
to
10
the
unpaid
balance,
if
any,
as
of
the
beginning
of
that
day
all
11
purchases
and
other
debits
and
deducting
all
payments
and
other
12
credits
made
or
received
as
of
that
day.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
the
calculation
of
finance
charges
for
17
consumer
loans
pursuant
to
open-end
credit.
18
A
consumer
loan
made
pursuant
to
open-end
credit
is
19
considered
a
supervised
loan
if
the
finance
charge
associated
20
with
the
consumer
loan
exceeds
the
finance
charge
permitted
21
in
Code
chapter
535.
Current
law
allows
creditors
that
22
are
authorized
to
make
supervised
loans
to
contract
for
and
23
receive
finance
charges
with
respect
to
a
loan
pursuant
to
24
open-end
credit.
Pursuant
to
the
Iowa
consumer
credit
code,
25
the
amount
of
that
finance
charge
may
not
exceed
the
greater
26
of
the
average
daily
balance
of
the
open-end
account
in
the
27
billing
cycle
for
which
the
charge
is
made
(average
daily
28
balance
limitation);
the
balance
of
the
open-end
account
at
29
the
beginning
of
the
first
day
of
the
billing
cycle
(first
day
30
of
billing
cycle
limitation);
or
the
median
amount
within
a
31
specified
range
including
the
balance
of
the
open-end
account
32
not
exceeding
that
permitted
by
the
average
daily
balance
33
limitation
or
the
first
day
of
billing
cycle
limitation
(median
34
amount
limitation).
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591
The
bill
adds
that,
as
an
alternative
to
the
average
daily
1
balance
limitation,
the
first
day
of
billing
cycle
limitation,
2
and
the
median
amount
limitation,
for
each
billing
cycle
a
3
charge
may
be
made
which
is
the
sum
of
the
charges
determined
4
by
applying
a
percentage
that
does
not
exceed
the
percentage
5
provided
in
Code
section
537.2403,
subsection
1,
to
the
actual
6
balance
of
the
open-end
account
on
each
day
in
the
billing
7
cycle
for
which
the
charge
is
made.
The
bill
establishes
that
8
the
actual
balance
on
a
day
is
determined
by
adding
to
the
9
unpaid
balance
as
of
the
beginning
of
that
day
all
purchases
10
and
other
debits
and
deducting
all
payments
and
other
credits
11
made
or
received
as
of
that
day.
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