Read the full stored bill text
House
File
2326
-
Reprinted
HOUSE
FILE
2326
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
603)
(As
Amended
and
Passed
by
the
House
April
1,
2026
)
A
BILL
FOR
An
Act
relating
to
debt
management
programs,
services,
fees,
1
and
licensee
requirements.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
HF
2326
(2)
91
nls/ko/md
H.F.
2326
Section
1.
Section
533A.8,
subsection
5,
paragraph
a,
Code
1
2026,
is
amended
to
read
as
follows:
2
a.
Maintain
a
separate
bank
trust
account
or
dedicated
3
account
in
which
all
payments
received
from
debtors
for
the
4
benefit
of
creditors
shall
be
deposited
and
in
which
all
5
payments
shall
remain
until
a
remittance
is
made
to
either
the
6
debtor
or
the
creditor.
7
Sec.
2.
Section
533A.8,
subsection
5,
paragraph
d,
Code
8
2026,
is
amended
by
striking
the
paragraph.
9
Sec.
3.
Section
533A.8,
subsection
6,
Code
2026,
is
amended
10
to
read
as
follows:
11
6.
If
the
debt
management
program
is
not
based
on
a
model
12
which
requires
the
licensee
or
any
licensee
to
receive
money
or
13
evidences
thereof
from
the
debtor
to
distribute
to
the
debtor’s
14
creditors
,
both
of
the
following
shall
apply:
15
a.
The
the
debtor
shall
maintain
full
control
of
and
access
16
to
any
moneys
set
aside
for
payment
to
creditors.
17
b.
The
licensee
may
not
receive
consideration
from
any
third
18
party
in
connection
with
services
rendered
to
a
debtor.
19
Sec.
4.
Section
533A.8,
Code
2026,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
10A.
If
a
debtor
who
has
contracted
with
22
a
licensee
to
settle
a
debt
has
executed
a
debt
settlement
23
agreement
with
a
creditor
to
settle
such
debt
and
has
made
at
24
least
one
payment
pursuant
to
that
agreement,
and
the
debtor
25
subsequently
fails
to
complete
the
payment
terms
required
under
26
that
debt
settlement
agreement,
the
licensee
shall
attempt
to
27
renegotiate,
resolve,
reduce,
or
otherwise
alter
the
terms
of
28
the
debt
with
the
creditor
and
shall
not
request
or
receive
29
an
additional
fee
from
the
debtor
for
any
additional
debt
30
management
service
provided
by
the
licensee
for
that
debt.
31
This
subsection
does
not
prohibit
a
licensee
from
requesting
32
or
receiving
payment
of
any
outstanding
balance
of
the
fee
33
required
by
the
contract
between
the
licensee
and
debtor
for
34
that
debt.
35
-1-
HF
2326
(2)
91
nls/ko/md
1/
3
H.F.
2326
Sec.
5.
Section
533A.9,
subsection
4,
Code
2026,
is
amended
1
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
2
following:
3
4.
If
a
debt
management
program
is
not
based
on
a
model
that
4
requires
the
licensee
or
another
licensee
to
receive
money
or
5
evidences
thereof
from
the
debtor
to
distribute
to
the
debtor’s
6
creditors,
a
licensee
may
not
request
or
receive
payment
of
7
any
fee
or
consideration
for
debt
management
services
provided
8
under
a
debt
management
program
unless
all
of
the
following
are
9
true:
10
a.
The
licensee
has
renegotiated,
resolved,
reduced,
or
11
otherwise
altered
the
terms
of
at
least
one
debt
pursuant
to
a
12
resolution
agreement
or
other
contractual
agreement
executed
13
by
the
debtor
and
the
creditor.
14
b.
The
debtor
has
made
at
least
one
payment
pursuant
to
the
15
resolution
agreement
or
other
contractual
agreement
entered
16
into
under
paragraph
“a”
.
17
c.
To
the
extent
that
debts
enrolled
in
the
debt
management
18
program
are
renegotiated,
resolved,
reduced,
or
otherwise
19
altered
individually,
the
fee
or
consideration
for
the
debt
20
management
service
bears
the
same
proportional
relationship
to
21
the
total
fee
or
consideration
for
renegotiating,
resolving,
22
reducing,
or
otherwise
altering
the
terms
of
the
entire
debt
23
balance
as
the
individual
debt
amount
bears
to
the
entire
debt
24
amount,
not
to
exceed
thirty
percent
of
the
total
amount
of
25
debt
enrolled
by
the
debtor
at
the
time
of
enrollment
in
the
26
debt
management
program.
The
individual
debt
amount
and
the
27
entire
debt
amount
are
those
owed
at
the
time
the
debt
was
28
enrolled
in
the
debt
management
program.
The
percent
charged
29
is
the
same
for
each
individual
debt
enrolled
in
the
debt
30
management
program.
31
Sec.
6.
Section
533A.9,
subsection
5,
Code
2026,
is
amended
32
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
33
following:
34
5.
a.
Notwithstanding
any
provision
of
this
section
to
35
-2-
HF
2326
(2)
91
nls/ko/md
2/
3
H.F.
2326
the
contrary,
the
total
aggregate
fee
or
consideration
charged
1
by
a
licensee
for
all
debt
management
services
provided
by
the
2
licensee
to
a
debtor
shall
not
exceed
thirty
percent
of
the
3
total
amount
of
debt
enrolled
by
the
debtor
at
the
time
of
4
enrollment
in
the
debt
management
program.
5
b.
A
licensee
may
assess
and
collect
the
fee
for
debt
6
management
services
on
a
per-debt
basis
as
a
debt
is
7
renegotiated,
settled,
reduced,
or
otherwise
altered
in
a
8
manner
consistent
with
this
section
and
applicable
federal
law.
9
Sec.
7.
Section
533A.9,
Code
2026,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
6.
If
a
debt
settlement
agreement
between
a
12
debtor
and
a
creditor
to
settle
a
debt
provides
for
the
debtor
13
to
make
more
than
one
payment
to
the
creditor,
the
licensee
14
shall
request
or
receive
payment
from
the
debtor
of
any
fee
for
15
debt
management
services
provided
with
respect
to
that
debt
16
incrementally
over
not
less
than
one
quarter
of
the
length
of
17
the
debtor’s
period
of
repayment
to
such
creditor.
18
Sec.
8.
Section
538A.2,
subsection
2,
Code
2026,
is
amended
19
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
i.
A
person
licensed
to
engage
in
the
21
business
of
debt
management
under
section
533A.2,
when
acting
22
within
the
course
and
scope
of
that
license.
23
-3-
HF
2326
(2)
91
nls/ko/md
3/
3