Bill Text: IA HSB69 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to service charges on consumer credit transactions.(See HF 235.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-01-27 - Committee report approving bill, renumbered as HF 235. [HSB69 Detail]
Download: Iowa-2021-HSB69-Introduced.html
House
Study
Bill
69
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
service
charges
on
consumer
credit
1
transactions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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H.F.
_____
Section
1.
Section
537.2501,
subsection
1,
paragraph
l,
1
Code
2021,
is
amended
to
read
as
follows:
2
l.
For
an
interest-bearing
a
consumer
credit
transaction,
3
a
service
charge
in
an
amount
not
to
exceed
the
lesser
of
ten
4
percent
of
the
amount
financed
or
thirty
dollars.
5
Sec.
2.
Section
537.2510,
subsection
3,
paragraph
a,
Code
6
2021,
is
amended
to
read
as
follows:
7
a.
If
the
prepayment
is
in
full,
the
creditor
may
collect
8
or
retain
a
minimum
charge
not
exceeding
five
dollars
in
a
9
transaction
which
had
an
amount
financed
of
seventy-five
10
dollars
or
less,
or
not
exceeding
seven
dollars
and
fifty
cents
11
in
a
transaction
which
had
an
amount
financed
of
more
than
12
seventy-five
dollars,
if
the
minimum
charge
was
contracted
13
for,
and
the
finance
charge
earned
at
the
time
of
prepayment
14
is
less
than
the
minimum
charge
contracted
for.
If,
however,
15
a
creditor
has
collected
a
service
charge
in
association
with
16
an
interest-bearing
a
consumer
credit
transaction
pursuant
to
17
section
537.2501,
subsection
1
,
paragraph
“l”
,
the
creditor
18
shall
not
collect
or
retain
a
minimum
charge
upon
prepayment
19
pursuant
to
this
subsection
.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
relates
to
service
charges
on
consumer
credit
24
transactions.
25
Current
law
authorizes
a
creditor
to
contract
for
and
26
receive
a
service
charge
in
an
amount
not
to
exceed
the
27
lesser
of
10
percent
of
the
amount
financed
or
$30
for
an
28
interest-bearing
consumer
credit
transaction.
Additionally,
29
current
law
prohibits
a
creditor
from
collecting
a
minimum
30
charge
upon
prepayment
of
a
consumer
credit
transaction
if
the
31
creditor
collected
a
service
charge
in
association
with
an
32
interest-bearing
consumer
credit
transaction.
The
bill
strikes
33
from
both
of
these
provisions
the
requirement
that
the
consumer
34
credit
transaction
bear
interest.
35
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