Bill Text: IA HSB138 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to delayed deposit services by requiring a delayed deposit repayment option and prohibiting certain acts of licensees.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-05 - Voted - Commerce. [HSB138 Detail]
Download: Iowa-2015-HSB138-Introduced.html
House
Study
Bill
138
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
COWNIE)
A
BILL
FOR
An
Act
relating
to
delayed
deposit
services
by
requiring
a
1
delayed
deposit
repayment
option
and
prohibiting
certain
2
acts
of
licensees.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
533D.9,
subsection
2,
paragraph
d,
Code
1
2015,
is
amended
to
read
as
follows:
2
d.
Any
penalty,
not
to
exceed
fifteen
dollars,
which
the
3
licensee
will
charge
if
the
check
is
not
negotiable
on
the
4
date
agreed
upon.
A
penalty
to
be
charged
pursuant
to
this
5
section
shall
only
be
collected
by
the
licensee
once
on
a
check
6
no
matter
how
long
the
check
remains
unpaid.
A
penalty
to
be
7
charged
pursuant
to
this
section
is
a
licensee’s
exclusive
8
remedy
,
except
a
penalty
charged
pursuant
to
section
533D.9A,
9
subsection
7,
and
if
a
licensee
charges
a
penalty
pursuant
to
10
this
section
no
other
penalties
under
this
chapter
or
any
other
11
provision
apply.
12
Sec.
2.
Section
533D.9,
subsection
2,
Code
2015,
is
amended
13
by
adding
the
following
new
paragraph:
14
NEW
PARAGRAPH
.
e.
That
the
licensee
must
provide
the
15
maker
of
the
check
the
option
to
enter
into
a
repayment
plan
16
agreement
pursuant
to
section
533D.9A
before
the
licensee
17
can
initiate
debt
collection,
civil
court
proceedings,
or
18
arbitration
to
collect
on
an
unpaid
check.
19
Sec.
3.
NEW
SECTION
.
533D.9A
Repayment
plans
——
20
requirements
——
agreement
——
penalty.
21
1.
If
the
check
is
not
negotiable
on
the
date
agreed
upon,
22
the
licensee
shall
provide
the
maker
of
the
check
with
the
23
option
to
enter
into
a
repayment
plan
agreement
pursuant
to
24
this
section
prior
to
initiating
debt
collection,
as
defined
25
by
section
537.7102,
civil
court
proceedings,
or
arbitration
26
to
collect
on
the
unpaid
check.
27
2.
a.
A
licensee
shall
enter
into
a
repayment
plan
28
agreement
with
the
maker
of
the
unpaid
check
at
the
maker’s
29
request.
The
maker
may
request
a
repayment
plan
through
30
written
notice
or
orally.
31
b.
A
licensee
shall
not
assess
any
other
fee,
interest
32
charge,
or
other
charge
on
the
maker
as
a
result
of
entering
33
into
a
repayment
plan
agreement
concerning
the
unpaid
check
34
obligation.
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3.
a.
The
maker
of
the
check
shall
pay
the
total
unpaid
1
check
obligation
to
be
charged
in
equal
installments
over
a
2
period
of
a
minimum
of
ninety
days.
A
repayment
plan
agreement
3
shall
contain
a
schedule
for
the
payment
of
the
total
unpaid
4
check
obligation.
5
b.
The
repayment
plan
agreement
shall
be
in
writing
and
6
signed
by
both
the
maker
and
the
licensee.
7
c.
The
maker
may
make
early
payments
on
a
repayment
plan
or
8
may
pay
a
larger
amount
in
an
installment
at
any
time
without
9
penalty,
fee,
or
charge.
10
4.
Upon
entering
into
a
repayment
plan
agreement,
the
11
licensee
shall
return
any
postdated
check
that
the
maker
12
has
given
to
the
licensee
for
the
delayed
deposit
service
13
transaction.
14
5.
During
the
duration
of
the
repayment
plan
agreement,
the
15
licensee
shall
not
transfer
or
sell
the
obligation
owing
on
the
16
unpaid
check.
17
6.
During
the
duration
of
the
repayment
plan
agreement,
the
18
obligation
the
maker
owes
on
the
unpaid
check
is
not
delinquent
19
and
the
licensee
shall
not
charge
a
penalty
pursuant
to
section
20
533D.9,
subsection
2.
21
7.
a.
If
the
maker
fails
to
make
a
payment
scheduled
22
pursuant
to
the
repayment
plan
agreement,
the
licensee
may
23
charge
a
penalty
of
twenty-five
dollars.
A
licensee
shall
24
only
collect
this
penalty
once
even
if
the
payment
remains
25
unpaid
or
the
maker
fails
to
make
another
scheduled
payment.
26
If
a
licensee
charges
a
penalty
pursuant
to
this
subsection,
27
no
other
penalties
under
this
chapter
or
any
other
provision
28
apply,
including
a
penalty
imposed
pursuant
to
section
533D.9,
29
subsection
2.
30
b.
Upon
the
maker’s
failure
to
make
a
scheduled
payment,
31
the
licensee
may
initiate
debt
collection
as
defined
in
section
32
537.7102,
civil
court
proceedings,
or
arbitration
to
collect
on
33
the
unpaid
check.
34
Sec.
4.
Section
533D.10,
subsection
1,
paragraph
f,
Code
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2015,
is
amended
to
read
as
follows:
1
f.
Receive
any
other
charges
or
fees
in
addition
to
the
2
fees
listed
in
section
533D.9,
subsections
1
and
2
,
or
section
3
533D.9A,
subsection
7
.
4
Sec.
5.
Section
533D.10,
subsection
1,
Code
2015,
is
amended
5
by
adding
the
following
new
paragraphs:
6
NEW
PARAGRAPH
.
g.
Hold
from
any
one
maker
a
check
if
the
7
licensee
currently
has
a
check
from
the
maker
that
is
not
8
negotiable
on
the
date
agreed
upon
or
if
the
licensee
has
had
a
9
check
from
the
maker
that
was
not
negotiable
on
the
date
agreed
10
upon
in
the
previous
year.
11
NEW
PARAGRAPH
.
h.
Hold
from
any
one
maker
a
check
if
the
12
maker
is
currently
paying
an
unpaid
check
obligation
pursuant
13
to
a
repayment
plan
agreement
entered
into
under
section
14
533D.9A.
15
NEW
PARAGRAPH
.
i.
Hold
from
any
one
maker
a
check
within
16
one
hundred
eighty
days
following
the
date
the
maker
paid
17
or
otherwise
satisfied
in
full
an
obligation
pursuant
to
a
18
repayment
plan
agreement
entered
into
pursuant
to
section
19
533D.9A.
20
NEW
PARAGRAPH
.
j.
Engage
in
fraud,
deceit,
21
misrepresentation,
or
other
acts
with
the
intent
to
evade
the
22
requirements
of
this
chapter.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
delayed
deposit
services
by
requiring
27
the
option
of
a
repayment
plan
and
prohibiting
certain
acts
by
28
licensees.
29
The
bill
states
that
if
the
check
is
not
negotiable
on
the
30
date
agreed
upon,
the
licensee
shall
offer
the
maker
of
the
31
check
the
option
to
enter
into
a
repayment
plan
agreement
prior
32
to
initiating
debt
collection
actions,
civil
court
proceedings,
33
or
arbitration
to
collect
on
the
unpaid
check.
The
bill
34
provides
that
if
the
maker
of
the
check
requests
a
repayment
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plan,
either
orally
or
in
writing,
the
licensee
must
enter
into
1
a
repayment
plan
agreement
with
the
maker
of
the
check
and
may
2
not
assess
a
fee,
interest
charge,
or
other
charge
to
enter
3
into
that
repayment
plan
agreement.
4
Pursuant
to
the
bill,
a
repayment
plan
agreement
shall
5
include
the
schedule
for
payment
of
the
total
unpaid
check
6
obligation.
Under
this
schedule,
the
maker
of
the
check
shall
7
pay
the
total
unpaid
check
obligation
in
equal
installments
8
over
a
period
of
at
least
90
days.
The
repayment
plan
9
agreement
must
be
in
writing
and
signed
by
the
licensee
and
the
10
maker
of
the
check.
The
maker
may
make
early
payments
or
may
11
pay
in
larger
amounts
in
an
installment
without
penalty,
fee,
12
or
charge.
13
The
bill
requires
the
licensee
to
return
the
postdated
check
14
at
issue
in
the
repayment
plan
agreement
upon
entering
into
a
15
repayment
plan
agreement.
16
The
bill
prohibits
the
licensee
from
transferring
or
selling
17
the
obligation
the
maker
owes
on
the
unpaid
check
during
the
18
duration
of
the
repayment
plan
agreement.
The
bill
states
that
19
during
the
time
the
repayment
plan
agreement
is
in
effect,
the
20
obligation
owed
on
the
unpaid
check
is
not
delinquent
or
past
21
due
and
the
licensee
shall
not
charge
the
$15
penalty
under
22
Code
section
533D.9,
subsection
2.
23
The
bill
states
that
if
the
maker
fails
to
make
a
scheduled
24
payment
under
the
repayment
plan
agreement,
the
licensee
may
25
charge
a
one-time
penalty
of
$25.
If
the
licensee
charges
the
26
$25
penalty,
the
licensee
may
not
charge
any
other
penalty.
27
The
bill
makes
conforming
changes.
The
bill
also
allows
28
the
licensee
to
proceed
with
debt
collection,
civil
court
29
proceedings,
or
arbitration
to
collect
on
the
unpaid
debt
if
30
the
maker
fails
to
make
a
scheduled
payment.
31
The
bill
also
adds
provisions
to
the
prohibited
acts
Code
32
section.
The
bill
prohibits
licensees
from
holding
a
check
33
from
any
one
maker
if
the
licensee
has
a
check
from
that
maker
34
that
is
not
negotiable
on
the
date
agreed
upon
or
has
had
a
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check
from
that
maker
that
was
not
negotiable
on
the
date
1
agreed
upon
in
the
previous
year.
The
bill
prohibits
licensees
2
from
holding
a
check
for
any
maker
if
the
maker
is
currently
3
paying
an
unpaid
check
obligation
pursuant
to
a
repayment
4
plan
agreement
entered
into
pursuant
to
the
bill.
The
bill
5
prohibits
licensees
from
holding
a
check
for
a
maker
within
180
6
days
following
the
date
the
maker
paid
or
otherwise
satisfied
a
7
debt
under
a
repayment
plan
agreement
entered
into
pursuant
to
8
the
bill.
The
bill
prohibits
licensees
from
engaging
in
fraud,
9
deceit,
misrepresentation,
or
other
acts
with
the
intent
to
10
evade
the
requirements
of
Code
chapter
533D
relating
to
delayed
11
deposit
services.
12
A
violation
of
the
bill
could
result
in
an
administrative
13
fine
of
not
more
than
$5,000
for
each
violation
and
the
cost
of
14
investigation.
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