HF 2268 (LSB 5299HV (2) 88)

HOUSE FILE 2268

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 514)

A BILL FOR

An Act relating to notice provisions in connection with designated consumer lending provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 537.3205, subsection 1, Code 2020, is amended to read as follows:
   1.  Whether or not a change is authorized by prior agreement, a creditor may make a change in the terms of an open-end credit account applying to any balance incurred after the effective date of the change only if the creditor delivers or mails to the consumer a written disclosure of the change at least sixty days before the effective date of the change in accordance with 12 C.F.R. §1026.9.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill makes specified changes relating to consumer lending provisions.
   The Iowa consumer credit code contained in Code chapter 537 currently states creditors may only make changes to the terms of an open-end credit account, applying to any balance incurred after the effective date of the change, if the creditor provides to the consumer a written disclosure of the change at least 60 days prior to the effective date of the change. The bill replaces that 60-day notification requirement by incorporating by reference federal regulations governing the disclosure of changes to the terms of an open-end credit account.