Text: HF00194 Text: HF00196 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 536.13, subsection 7, unnumbered 1 2 paragraph 2, Code 1995, is amended to read as follows: 1 3 The Iowa consumer credit code, chapter 537, applies to a 1 4 consumer loan in which the licensee participates or engages, 1 5 and a violation of the Iowa consumer credit code is a 1 6 violation of this chapter. The superintendent shall revoke 1 7 the license of a person required to be licensed under this 1 8 chapter, if the superintendent determines that the person is 1 9 required to be similarly licensed in another state, and has 1 10 violated a provision of that state's law which would 1 11 constitute a violation of chapter 537. 1 12 Sec. 2. Section 536A.29, subsection 1, Code 1995, is 1 13 amended to read as follows: 1 14 1. The superintendent shall enforce the Iowa consumer 1 15 credit code with respect to licensees, as provided in sections 1 16 537.2303, 537.2305 and 537.6105. The superintendent shall 1 17 revoke the license of a person required to be licensed under 1 18 this chapter, if the superintendent determines that the person 1 19 is required to be similarly licensed in another state, and has 1 20 violated a provision of that state's law which would 1 21 constitute a violation of chapter 537. 1 22 Sec. 3. Section 537.2303, Code 1995, is amended by adding 1 23 the following new subsection: 1 24 NEW SUBSECTION. 8. The licensing authority shall revoke 1 25 the license of a person required to be licensed under chapter 1 26 536 or 536A, if the licensing authority determines that the 1 27 person is required to be similarly licensed in another state, 1 28 and has violated a provision of that state's law which would 1 29 constitute a violation under this chapter. 1 30 Sec. 4. Section 537.2504, unnumbered paragraph 1, Code 1 31 1995, is amended to read as follows: 1 32 With respect to a consumer credit transaction in which the 1 33 rate of finance charge required to be disclosed in the 1 34 transaction pursuant to section 537.3201 does not exceed 1 35 eighteen percent per year, other than a consumer lease or a 2 1 consumer rental purchase agreement, the creditor may, by 2 2 agreement with the consumer, refinance the unpaid balance and 2 3 may contract for and receive a finance charge based on the 2 4 amount financed resulting from the refinancing at a rate not 2 5 exceeding that permitted by the provisions on finance charge 2 6 for consumer credit sales other than open end credit in 2 7 section 537.2201 if a consumer credit sale is refinanced, the 2 8 provisions on finance charge for a consumer loan other than a 2 9 supervised loan in section 537.2401, subsection 1, or the 2 10 provisions on finance charge for a supervised loan not 2 11 pursuant to open end credit in section 537.2401, subsection 2, 2 12 as applicable, if a consumer loan is refinanced. With respect 2 13 to a consumer credit transaction in which the rate of finance 2 14 charge required to be disclosed in the transaction to the 2 15 consumer pursuant to section 537.3201 exceeds eighteen percent 2 16 per year, other than a consumer lease or a consumer rental 2 17 purchase agreement, the creditor may by agreement with the 2 18 consumer, refinance the unpaid balance and may contract for 2 19 and receive a finance charge based on the amount financed 2 20 resulting from the refinancing at a rate of finance charge not 2 21 to exceed thatwhich was required to be disclosed in the2 22original transaction to the consumerrate permitted for 2 23 consumer credit sales pursuant to section537.3201537.2201 or 2 24 the rate permitted for consumer loans pursuant to section 2 25 537.2401, whichever is greater. For the purpose of 2 26 determining the finance charge permitted, the amount financed 2 27 resulting from the refinancing consists of: 2 28 Sec. 5. Section 537.2505, subsection 3, Code 1995, is 2 29 amended by striking the subsection and inserting in lieu 2 30 thereof the following: 2 31 3. Upon the consolidation of any debt arising from or in 2 32 combination from a consumer credit sale, lender credit card, 2 33 seller credit card, or consumer loan, the creditor may 2 34 contract for and receive the finance charge at a rate 2 35 permitted for consumer credit sales pursuant to section 3 1 537.2201 or permitted for consumer loans pursuant to section 3 2 537.2401, whichever is greater. 3 3 EXPLANATION 3 4 This bill amends several provisions of chapter 537, the 3 5 Iowa consumer credit code. The bill provides that the 3 6 superintendent of banking shall revoke the license of a person 3 7 required to be licensed under chapter 536, the Iowa regulated 3 8 loan Act, or chapter 536A, the Iowa industrial loan law, if 3 9 the person is required to be similarly licensed in another 3 10 state, and has violated a provision of that state's law which 3 11 would constitute a violation under chapter 537, Iowa's 3 12 consumer credit code. 3 13 This bill regulates the finance charge that may be imposed 3 14 for refinancing certain consumer credit transactions in which 3 15 the rate of interest required to be disclosed pursuant to the 3 16 federal Truth in Lending Act exceeds 18 percent per year. 3 17 Currently the permitted rate is based on the amount which was 3 18 required to be disclosed in the original transaction. This 3 19 bill provides that the rate is the same as permitted for 3 20 consumer credit sales pursuant to section 537.2201 or for 3 21 consumer loans pursuant to section 537.2401, whichever is 3 22 more. 3 23 The bill also amends a section providing for the 3 24 consolidation of debts arising from consumer loans, consumer 3 25 credit sales, lender credit cards, or seller credit cards. 3 26 Currently, if the consolidated debt arises from consumer 3 27 loans, the finance charge must be the same as for consumer 3 28 loans as regulated pursuant to section 537.2401. If the 3 29 consolidation includes a debt arising from a consumer credit 3 30 sale, or a lender credit card, the rate must be the same as 3 31 for consumer credit sales as regulated in section 537.2201. 3 32 This bill provides that upon consolidation of any debt arising 3 33 from a consumer credit sale, lender credit card, seller credit 3 34 card, or consumer loan, the rate must be the same as provided 3 35 pursuant to section 537.2201 or 537.2401, whichever is more. 4 1 LSB 2107HH 76 4 2 da/sc/14
Text: HF00194 Text: HF00196 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Mon Mar 4 09:34:06 CST 1996
URL: /DOCS/GA/76GA/Legislation/HF/00100/HF00195/950221.html
jhf