HF878 • 2026

A bill for an act relating to annual percentage rates for delayed deposit service transactions.(Formerly HF 627 .)

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: COMMITTEE ON COMMERCE
Last action: 2025-04-03
Official status: Referred to Commerce. H.J. 896 .
Effective date: Not listed

Plain English Breakdown

The bill summary does not specify enforcement mechanisms or consequences for violations.

Setting Limits on Annual Percentage Rates for Delayed Deposit Services

This bill sets a maximum annual percentage rate of 36% for delayed deposit service transactions and provides additional protections based on federal law for military personnel.

What This Bill Does

Sets the highest allowed annual percentage rate at 36% for delayed deposit services.
Makes any transaction that breaks this rule invalid, so no fees or charges can be collected.
Limits rates for active-duty military members and their dependents based on federal law.

Who It Names or Affects

People who use delayed deposit services
Financial institutions providing these services
Active-duty military personnel and their dependents

Terms To Know

Delayed Deposit Service Transaction: A financial service where a check or payment is deposited later than the date it was written, often with high fees.
Annual Percentage Rate (APR): The yearly cost of borrowing money expressed as a percentage.

Limits and Unknowns

Does not specify what happens if someone breaks the rules.
Does not explain how to enforce these limits on financial institutions.
Does not provide details about penalties for violating the APR limit.

Bill History

2025-04-03 Iowa Legislature
Referred to Commerce. H.J. 896 .
2025-03-07 Iowa Legislature
Introduced, placed on calendar. H.J. 566 .

Official Summary Text

A bill for an act relating to annual percentage rates for delayed deposit service transactions.(Formerly HF 627 .)

Current Bill Text

Read the full stored bill text

House

File

878

-

Introduced

HOUSE

FILE

878

BY

COMMITTEE

ON

COMMERCE

(SUCCESSOR

TO

HF

627)

A

BILL

FOR

An

Act

relating

to

annual

percentage

rates

for

delayed

deposit

1

service

transactions.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

2722HV

(1)

91

nls/ko

H.F.

878

Section

1.

NEW

SECTION

.

533D.9A

Annual

percentage

rate

1

restriction.

2

1.

Notwithstanding

subsection

3,

a

licensee

shall

not

3

impose

an

annual

percentage

rate

greater

than

thirty-six

4

percent

in

connection

with

a

delayed

deposit

service

5

transaction.

6

2.

A

delayed

deposit

service

transaction

made

in

violation

7

of

this

section

shall

be

void,

and

the

licensee

making

the

8

delayed

deposit

service

transaction

shall

not

collect,

receive,

9

or

retain

any

principal,

interest,

fees,

or

other

charges

in

10

connection

with

the

delayed

deposit

service

transaction.

11

3.

A

licensee

shall

not

impose

on

an

individual

on

active

12

military

duty,

or

their

spouse

or

dependents,

an

annual

13

percentage

rate

greater

than

the

rates

allowed

under

10

U.S.C.

14

§987

in

connection

with

a

delayed

deposit

service

transaction.

15

EXPLANATION

16

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

17

the

explanation’s

substance

by

the

members

of

the

general

assembly.

18

This

bill

relates

to

annual

percentage

rates

for

delayed

19

deposit

service

transactions.

20

Under

the

bill,

a

person

licensed

under

Code

chapter

533D

21

(licensee)

shall

not

impose

an

annual

percentage

rate

greater

22

than

36

percent

in

connection

with

a

delayed

deposit

service

23

transaction.

A

delayed

deposit

service

transaction

made

in

24

violation

of

the

bill

shall

be

void,

and

the

licensee

shall

not

25

collect,

receive,

or

retain

any

principal,

interest,

fees,

or

26

other

charges

in

connection

with

the

delayed

deposit

service

27

transaction.

28

For

an

individual

on

active

military

duty,

or

their

spouse

29

or

dependent,

a

licensee

shall

not

impose

an

annual

percentage

30

rate

greater

than

allowable

under

10

U.S.C.

§987

in

connection

31

with

a

delayed

deposit

service

transaction.

32

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LSB

2722HV

(1)

91

nls/ko

1/

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