Read the full stored bill text
House
File
2039
-
Introduced
HOUSE
FILE
2039
BY
McBURNEY
A
BILL
FOR
An
Act
relating
to
delayed
deposit
services
by
limiting
the
1
annual
percentage
rate
for
fees
and
requiring
a
delayed
2
deposit
repayment
option
in
certain
circumstances,
and
3
making
penalties
applicable.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
533D.9,
subsection
2,
paragraph
b,
Code
1
2026,
is
amended
to
read
as
follows:
2
b.
The
annual
percentage
rate
as
computed
pursuant
to
the
3
federal
Truth
in
Lending
Act.
The
annual
percentage
rate
shall
4
not
exceed
ten
percent.
5
Sec.
2.
Section
533D.9,
subsection
2,
Code
2026,
is
amended
6
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
e.
That
a
maker
obtaining
more
than
four
8
delayed
deposit
service
loans
from
one
licensee
in
a
two-month
9
period
shall
have
the
option
to
enter
into
an
extended
10
repayment
plan
agreement
with
the
licensee
pursuant
to
section
11
533D.9A
upon
the
maker’s
request
and
prior
to
the
date
the
last
12
check
accepted
by
the
licensee
is
to
be
negotiable.
13
Sec.
3.
NEW
SECTION
.
533D.9A
Extended
repayment
plan.
14
1.
Any
maker
obtaining
more
than
four
delayed
deposit
15
service
loans
from
one
licensee
in
a
two-month
period
may
enter
16
into
an
extended
repayment
plan
agreement
with
the
licensee
17
if
the
maker
requests
to
enter
into
such
agreement
prior
to
18
the
date
upon
which
the
last
check
accepted
by
the
licensee
19
is
to
be
negotiable.
Except
as
provided
in
this
section,
the
20
licensee
shall
not
initiate
debt
collection,
as
defined
in
21
section
537.7102,
civil
court
proceedings,
or
arbitration
to
22
collect
on
any
unpaid
checks
during
the
term
of
the
extended
23
repayment
plan
agreement.
24
2.
A
licensee
is
required
to
enter
into
only
one
extended
25
repayment
plan
agreement
with
a
maker
in
a
twelve-month
period,
26
measured
from
the
commencement
date
of
the
first
extended
27
repayment
plan
agreement
until
the
commencement
date
of
the
28
second
extended
repayment
plan
agreement.
29
3.
A
licensee
shall
not
assess
any
other
fee,
interest
30
charge,
or
other
charge
on
the
maker
as
a
result
of
entering
31
into
an
extended
repayment
plan
agreement
concerning
any
unpaid
32
check
obligations.
33
4.
a.
The
maker
shall
be
allowed
to
pay
the
total
unpaid
34
check
obligations
to
be
charged
in
at
least
four
substantially
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equal
installments
due
on
dates
or
soon
after
dates
when
the
1
maker
will
receive
regular
income,
or
on
dates
as
mutually
2
agreed
upon
by
the
maker
and
the
licensee.
The
extended
3
repayment
plan
agreement
shall
contain
a
schedule
for
the
4
payment
of
the
total
unpaid
check
obligations.
5
b.
The
extended
repayment
plan
agreement
shall
be
in
writing
6
and
signed
by
both
the
maker
and
the
licensee.
7
5.
Upon
entering
into
an
extended
repayment
plan
agreement,
8
the
licensee
shall
return
any
postdated
checks
that
the
maker
9
has
given
to
the
licensee
for
the
original
delayed
deposit
10
services
transactions
and
shall
do
one
of
the
following:
11
a.
The
licensee
shall
require
the
maker
at
the
time
of
12
entering
into
an
extended
repayment
plan
agreement
to
make
13
a
new
check
for
the
balance
on
any
unpaid
checks
and
upon
14
each
payment
by
the
maker
under
the
extended
repayment
plan
15
agreement,
the
licensee
shall
require
a
new
check
for
the
16
remaining
balance
and
shall
return
any
previous
check
to
the
17
maker.
18
b.
The
licensee
shall
require
the
maker
at
the
time
of
19
entering
into
the
extended
repayment
plan
agreement
to
provide
20
multiple
checks,
one
for
each
of
the
scheduled
payments
under
21
the
extended
repayment
plan
agreement.
22
6.
During
the
duration
of
the
extended
repayment
plan
23
agreement,
the
obligations
the
maker
owes
on
any
unpaid
checks
24
are
not
delinquent
and
the
licensee
shall
not
charge
a
penalty
25
pursuant
to
section
533D.9,
subsection
2.
26
7.
Upon
the
maker’s
failure
to
make
a
scheduled
payment
27
pursuant
to
the
extended
repayment
plan
agreement,
the
licensee
28
may
charge
a
penalty
pursuant
to
section
533D.9,
subsection
29
2,
and
may
initiate
debt
collection
as
defined
in
section
30
537.7102,
civil
court
proceedings,
or
arbitration
to
collect
on
31
any
unpaid
checks.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
modifies
provisions
applicable
to
delayed
deposit
1
services.
2
The
bill
limits
the
annual
percentage
rate
applicable
to
a
3
delayed
deposit
services
transaction
to
10
percent,
as
computed
4
pursuant
to
the
federal
Truth
in
Lending
Act.
5
The
bill
allows
a
maker
obtaining
more
than
four
delayed
6
deposit
service
loans
from
one
licensee
in
a
two-month
period
7
to
enter
into
an
extended
repayment
plan
agreement
with
the
8
licensee
if
the
maker
requests
to
enter
into
such
an
agreement
9
prior
to
the
date
upon
which
the
last
check
accepted
by
the
10
licensee
is
to
be
negotiable.
11
The
bill
requires
a
licensee
holding
multiple
checks
from
12
one
maker
at
any
one
time
to
enter
into
an
extended
repayment
13
plan
agreement
if
the
maker
of
the
multiple
checks
requests
14
to
enter
into
such
agreement
prior
to
the
date
upon
which
the
15
checks
are
to
be
negotiable.
The
licensee
may
not
initiate
16
debt
collection,
civil
court
proceedings,
or
arbitration
to
17
collect
on
the
unpaid
checks
during
the
term
of
the
extended
18
repayment
plan
agreement.
A
licensee
need
only
enter
into
one
19
extended
repayment
plan
agreement
with
a
maker
of
multiple
20
checks
in
a
12-month
period.
A
licensee
cannot
charge
a
fee,
21
interest
charge,
or
other
charge
as
a
result
of
entering
into
22
an
extended
repayment
plan
agreement.
During
the
duration
23
of
the
agreement,
the
obligations
that
the
maker
owes
on
the
24
unpaid
checks
are
not
delinquent
and
the
licensee
cannot
charge
25
penalties
for
a
delinquent
obligation.
26
The
bill
requires
the
extended
repayment
plan
agreement
27
to
be
in
writing,
signed
by
the
maker
and
the
licensee,
and
28
contain
the
schedule
for
payment
of
the
total
unpaid
check
29
obligations.
The
schedule
must
allow
the
maker
to
pay
the
30
checks
in
at
least
four
substantially
equal
installments.
31
The
bill
requires
the
licensee
to
return
any
postdated
32
checks
that
the
maker
has
given
to
the
licensee
for
the
33
original
transactions.
The
licensee
may
then
either
require
34
the
maker
to
provide
a
new
check
for
the
balance
on
the
unpaid
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checks
or
provide
multiple
checks
for
each
scheduled
payment
1
under
the
agreement.
2
The
bill
states
that
upon
the
maker’s
failure
to
make
a
3
scheduled
payment,
the
licensee
may
charge
a
penalty
pursuant
4
to
Code
section
533D.9(2)
not
to
exceed
$15,
and
may
initiate
5
debt
collection,
civil
court
proceedings,
or
arbitration
to
6
collect
on
the
unpaid
checks.
7
A
violation
of
the
bill
may
result
in
an
administrative
fine
8
of
not
more
than
$5,000
for
each
violation
and
the
cost
of
9
investigation.
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