Bill Text: IA HF598 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to delayed deposit services by requiring a delayed deposit repayment option. (Formerly HSB 138)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-04-03 - Referred to Commerce. H.J. 753. [HF598 Detail]
Download: Iowa-2015-HF598-Introduced.html
House File 598 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 138) A BILL FOR 1 An Act relating to delayed deposit services by requiring a 2 delayed deposit repayment option. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1668HV (2) 86 ad/sc PAG LIN 1 1 Section 1. Section 533D.9, subsection 2, Code 2015, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. e. That the licensee must provide the maker 1 4 of the check the option to enter into an extended repayment 1 5 plan agreement pursuant to section 533D.9A upon the maker's 1 6 request and prior to the date the check is to be negotiable if 1 7 the maker is unable to repay the check on the date agreed upon. 1 8 Sec. 2. NEW SECTION. 533D.9A Extended repayment plan. 1 9 1. The licensee shall enter into an extended repayment plan 1 10 agreement if the maker of the check is unable to repay the 1 11 check and the maker requests to enter into such agreement prior 1 12 to the date upon which the check is to be negotiable. Except 1 13 as provided in this section, the licensee shall not initiate 1 14 debt collection, as defined by section 537.7102, civil court 1 15 proceedings, or arbitration to collect on the unpaid check 1 16 during the term of the extended repayment plan agreement. 1 17 2. A licensee is required to enter into only one extended 1 18 repayment plan agreement with a maker of a check in a 1 19 twelve=month period, measured from the commencement date of the 1 20 first extended repayment plan agreement until the commencement 1 21 date of the second extended repayment plan agreement. 1 22 3. A licensee shall not assess any other fee, interest 1 23 charge, or other charge on the maker as a result of entering 1 24 into an extended repayment plan agreement concerning the unpaid 1 25 check obligation. 1 26 4. a. The maker of a check shall be allowed to pay the 1 27 total unpaid check obligation to be charged in at least four 1 28 substantially equal installments due on dates or soon after 1 29 dates when the maker of the check will receive regular income. 1 30 The extended repayment plan agreement shall contain a schedule 1 31 for the payment of the total unpaid check obligation. 1 32 b. The extended repayment plan agreement shall be in writing 1 33 and signed by both the maker and the licensee. 1 34 5. Upon entering into an extended repayment plan agreement, 1 35 the licensee shall return any postdated check that the maker 2 1 has given to the licensee for the original delayed deposit 2 2 services transaction and shall do one of the following: 2 3 a. The licensee shall require the maker of the check at 2 4 the time of entering into an extended repayment plan agreement 2 5 to make a new check for the balance on the unpaid check and 2 6 upon each payment by the maker under the extended repayment 2 7 plan agreement, the licensee shall require a new check for the 2 8 remaining balance and return any previous check to the maker. 2 9 b. The licensee shall require the maker of the check at the 2 10 time of entering into the extended repayment plan agreement to 2 11 provide multiple checks, one for each of the scheduled payments 2 12 under the extended repayment plan agreement. 2 13 6. During the duration of the extended repayment plan 2 14 agreement, the obligation the maker owes on the unpaid check 2 15 is not delinquent and the licensee shall not charge a penalty 2 16 pursuant to section 533D.9, subsection 2. 2 17 7. Upon the maker's failure to make a scheduled payment, 2 18 the licensee may charge a penalty pursuant to section 533D.9, 2 19 subsection 2, and may initiate debt collection as defined in 2 20 section 537.7102, civil court proceedings, or arbitration to 2 21 collect on the unpaid check. 2 22 EXPLANATION 2 23 The inclusion of this explanation does not constitute agreement with 2 24 the explanation's substance by the members of the general assembly. 2 25 This bill relates to delayed deposit services by requiring 2 26 the option of a repayment plan. 2 27 The bill requires the licensee to enter into an extended 2 28 repayment plan agreement if the maker of the check is unable 2 29 to repay the check and the maker requests to enter into such 2 30 agreement prior to the date upon which the check is to be 2 31 negotiable. The licensee may not initiate debt collection, 2 32 civil court proceedings, or arbitration to collect on the 2 33 unpaid check during the term of the extended repayment plan 2 34 agreement. The bill requires a licensee to enter into only one 2 35 extended repayment plan agreement with a maker of a check in a 3 1 12=month period. The bill prohibits the licensee from charging 3 2 a fee, interest charge, or other charge as a result of entering 3 3 into an extended repayment plan agreement. The bill states 3 4 that during the duration of the agreement, the obligation 3 5 the maker owes on the unpaid check is not delinquent and the 3 6 licensee shall not charge the $15 penalty for a delinquent 3 7 obligation. 3 8 The bill provides that the extended repayment plan agreement 3 9 shall be in writing, signed by the maker and the licensee, and 3 10 shall contain the schedule for the payment of the total unpaid 3 11 check obligation. The bill specifies that the schedule for the 3 12 payment shall allow the maker of a check to pay the check in at 3 13 least four substantially equal installments. 3 14 The bill requires the licensee to return any postdated check 3 15 that the maker has given to the licensee for the original 3 16 delayed deposit services transaction. 3 17 The bill states that upon the maker's failure to make a 3 18 scheduled payment, the licensee may charge a penalty pursuant 3 19 to Code section 533D.9, subsection 2, and may initiate debt 3 20 collection, civil court proceedings, or arbitration to collect 3 21 on the unpaid check. 3 22 A violation of the bill could result in an administrative 3 23 fine of not more than $5,000 for each violation and the cost of 3 24 investigation. LSB 1668HV (2) 86 ad/sc
