Bill Text: IA HF629 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act providing for the deferral of unpaid installments and deferral charges for certain interest-bearing consumer credit transactions. (Formerly HF 512 & HSB 14.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2017-04-17 - Withdrawn. H.J. 1035. [HF629 Detail]

Download: Iowa-2017-HF629-Introduced.html

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House File 629 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 512)
                                 (SUCCESSOR TO HSB 14)

                                      A BILL FOR

  1 An Act providing for the deferral of unpaid installments and
  2    deferral charges for certain interest=bearing consumer
  3    credit transactions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1656HZ (2) 87
    gh/rn/nh

PAG LIN



  1  1    Section 1.  Section 537.2503, subsection 1, Code 2017, is
  1  2 amended to read as follows:
  1  3    1.  a.  Before or after default in payment of a scheduled
  1  4 installment of a precomputed consumer credit transaction, the
  1  5 parties to the transaction may agree in writing to a deferral
  1  6 of all or part of one or more unpaid installments and the
  1  7 creditor may make at the time of deferral and receive at that
  1  8 time or at any time thereafter a deferral charge which is
  1  9 not in excess of one and one=half percent per month for the
  1 10 period of time for which it is deferred, but not to exceed the
  1 11 rate of finance charge which was required to be disclosed in
  1 12 the transaction to the consumer pursuant to section 537.3201
  1 13 applied to each amount deferred for the period for which it
  1 14 is deferred. In computing a deferral charge for one or more
  1 15 months, any month may be counted as one=twelfth of a year and
  1 16 in computing a deferral charge for part of a month, a day shall
  1 17 be counted as one three hundred sixty=fifth of a year.
  1 18    b.  With respect to an interest=bearing consumer credit
  1 19 transaction not pursuant to an open=end credit arrangement
  1 20 and other than a consumer lease or consumer rental purchase
  1 21 agreement, the parties to the transaction may agree in writing
  1 22 to a deferral of all or part of one or more unpaid installments
  1 23 in addition to any interest accrued pursuant to the terms of
  1 24 the consumer credit transaction. The creditor may make at
  1 25 the time of deferral and receive at that time or at any time
  1 26 thereafter a deferral charge which shall not exceed twenty
  1 27 dollars per deferred installment.
  1 28                           EXPLANATION
  1 29 The inclusion of this explanation does not constitute agreement with
  1 30 the explanation's substance by the members of the general assembly.
  1 31    This bill authorizes the deferral of unpaid installments and
  1 32 deferral charges for certain interest=bearing consumer credit
  1 33 transactions.
  1 34    Under Code section 537.2503(1), the parties to a precomputed
  1 35 consumer credit transaction may agree in writing to a partial
  2  1 or full deferral of any unpaid installments and the creditor
  2  2 may receive a deferral charge. The bill amends Code section
  2  3 537.2503(1) by providing for such a deferral with respect to
  2  4 interest=bearing consumer credit transactions not pursuant to
  2  5 open=end credit arrangements and other than consumer lease
  2  6 or consumer rental purchase agreements. The parties to this
  2  7 type of transaction may agree in writing to a partial or full
  2  8 deferral of any unpaid installments in addition to any interest
  2  9 accrued pursuant to the terms of the transaction. The creditor
  2 10 may receive a deferral charge not to exceed $20 per deferred
  2 11 installment.
       LSB 1656HZ (2) 87
       gh/rn/nh