Bill Text: IA SSB1016 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing for the deferral of unpaid installments and deferral charges for certain interest-bearing consumer credit transactions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-01-25 - Subcommittee recommends amendment and passage. [SSB1016 Detail]
Download: Iowa-2017-SSB1016-Introduced.html
Senate
Study
Bill
1016
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
ANDERSON)
A
BILL
FOR
An
Act
providing
for
the
deferral
of
unpaid
installments
and
1
deferral
charges
for
certain
interest-bearing
consumer
2
credit
transactions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1656XC
(2)
87
gh/rn/nh
S.F.
_____
Section
1.
Section
537.2503,
subsection
1,
Code
2017,
is
1
amended
to
read
as
follows:
2
1.
a.
Before
or
after
default
in
payment
of
a
scheduled
3
installment
of
a
precomputed
consumer
credit
transaction,
the
4
parties
to
the
transaction
may
agree
in
writing
to
a
deferral
5
of
all
or
part
of
one
or
more
unpaid
installments
and
the
6
creditor
may
make
at
the
time
of
deferral
and
receive
at
that
7
time
or
at
any
time
thereafter
a
deferral
charge
which
is
8
not
in
excess
of
one
and
one-half
percent
per
month
for
the
9
period
of
time
for
which
it
is
deferred,
but
not
to
exceed
the
10
rate
of
finance
charge
which
was
required
to
be
disclosed
in
11
the
transaction
to
the
consumer
pursuant
to
section
537.3201
12
applied
to
each
amount
deferred
for
the
period
for
which
it
13
is
deferred.
In
computing
a
deferral
charge
for
one
or
more
14
months,
any
month
may
be
counted
as
one-twelfth
of
a
year
and
15
in
computing
a
deferral
charge
for
part
of
a
month,
a
day
shall
16
be
counted
as
one
three
hundred
sixty-fifth
of
a
year.
17
b.
With
respect
to
an
interest-bearing
consumer
credit
18
transaction
not
pursuant
to
an
open-end
credit
arrangement
19
and
other
than
a
consumer
lease
or
consumer
rental
purchase
20
agreement,
the
parties
to
the
transaction
may
agree
in
writing
21
to
a
deferral
of
all
or
part
of
one
or
more
unpaid
installments
22
in
addition
to
any
interest
accrued
pursuant
to
the
terms
of
23
the
consumer
credit
transaction.
The
creditor
may
make
at
24
the
time
of
deferral
and
receive
at
that
time
or
at
any
time
25
thereafter
a
deferral
charge
which
shall
not
exceed
twenty
26
dollars
per
month
for
the
period
of
time
for
which
the
payment
27
is
deferred.
28
Sec.
2.
Section
537.2503,
subsection
3,
Code
2017,
is
29
amended
to
read
as
follows:
30
3.
The
parties
may
agree
in
writing
at
the
time
of
a
31
precomputed
consumer
credit
transaction
or
an
interest-bearing
32
consumer
credit
transaction
not
pursuant
to
an
open-end
credit
33
arrangement
and
other
than
a
consumer
lease
or
consumer
rental
34
purchase
agreement
that
if
an
installment
is
not
paid
within
35
-1-
LSB
1656XC
(2)
87
gh/rn/nh
1/
2
S.F.
_____
ten
days
after
its
due
date,
the
creditor
may
unilaterally
1
grant
a
deferral
and
make
charges
as
provided
in
this
section
.
2
No
deferral
charge
may
be
made
for
a
period
after
the
date
3
that
the
creditor
elects
to
accelerate
the
maturity
of
the
4
transaction.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
authorizes
the
deferral
of
unpaid
installments
and
9
deferral
charges
for
certain
interest-bearing
consumer
credit
10
transactions.
11
Under
Code
section
537.2503(1),
the
parties
to
a
precomputed
12
consumer
credit
transaction
may
agree
in
writing
to
a
partial
13
or
full
deferral
of
any
unpaid
installments
and
the
creditor
14
may
receive
a
deferral
charge.
The
bill
amends
Code
section
15
537.2503(1)
by
providing
for
such
a
deferral
with
respect
to
16
interest-bearing
consumer
credit
transactions
not
pursuant
to
17
open-end
credit
arrangements
and
other
than
consumer
lease
18
or
consumer
rental
purchase
agreements.
The
parties
to
this
19
type
of
transaction
may
agree
in
writing
to
a
partial
or
full
20
deferral
of
any
unpaid
installments
in
addition
to
any
interest
21
accrued
pursuant
to
the
terms
of
the
transaction.
The
creditor
22
may
receive
a
deferral
charge
not
to
exceed
$20
per
month
for
23
the
period
of
time
that
payment
is
deferred.
24
The
bill
also
includes
interest-bearing
consumer
credit
25
transactions
not
pursuant
to
open-end
credit
arrangements
26
and
other
than
consumer
lease
or
consumer
rental
purchase
27
agreements
in
the
types
of
transactions
in
which
the
parties
28
may
agree
in
writing
to
a
unilateral
deferral
under
Code
29
section
537.2503(3).
30
-2-
LSB
1656XC
(2)
87
gh/rn/nh
2/
2
