Text: HF02196 Text: HF02198 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2402, subsection 1, Code 1995, is 1 2 amended to read as follows: 1 3 1. If authorized to make supervised loans, a creditor may 1 4 contract for and receive a finance charge without limitation 1 5 as to amount or rate with respect to a loan pursuant to open- 1 6 end creditnot exceeding thatas permitted in this section. 1 7 Sec. 2. Section 537.2402, subsections 3, 5, and 6, Code 1 8 1995, are amended by striking the subsections. 1 9 Sec. 3. Section 537.2501, subsection 1, paragraph f, 1 10 unnumbered paragraph 1, Code Supplement 1995, is amended to 1 11 read as follows: 1 12 With respect to open-end creditpursuant to a credit card1 13issued by the creditor which entitles the cardholder to1 14purchase or lease goods or services from at least one hundred1 15persons not related to the card issuer, the parties may 1 16 contract for an over-limit charge not to exceed ten dollars if 1 17 the balance of the account exceeds the credit limit 1 18 established pursuant to the agreement. The over-limit charge 1 19 under this paragraph shall not be assessed again in a 1 20 subsequent billing cycle unless in a subsequent billing cycle 1 21 the account balance has been reduced below the credit limit. 1 22 Sec. 4. Section 537.2502, subsection 4, Code Supplement 1 23 1995, is amended to read as follows: 1 24 4. With respect to open-end creditobtained pursuant to a1 25credit card issued by the creditor which entitles the1 26cardholder to purchase or lease goods or services from at1 27least one hundred persons not related to the card issuer, the 1 28 parties may contract for a delinquency charge on any payment 1 29 not paid in full within ten days after its due date, as 1 30 originally scheduled or as deferred, in an amount not to 1 31 exceed ten dollars. 1 32 EXPLANATION 1 33 This bill amends provisions relating to the permissible 1 34 finance charge which may be contracted for with respect to a 1 35 loan pursuant to open-end credit. 2 1 Section 537.2402 is amended to provide that a creditor 2 2 authorized to make supervised loans may contract for and 2 3 receive a finance charge without limitation as to amount or 2 4 rate with respect to open-end credit as permitted in the 2 5 section. Subsections 3, 5, and 6 are struck, which currently 2 6 establish limitations on the finance charge. Subsection 3 2 7 limits the finance charge, for open-end credit subject to a 2 8 monthly billing cycle, to an amount equal to one and sixty- 2 9 five-hundredths percent of the maximum balance amount as 2 10 determined under subsection 2. Subsection 5 provides that a 2 11 creditor may contract and receive a finance charge without 2 12 limitation with respect to a loan pursuant to open-end credit 2 13 obtained pursuant to a credit card issued by a creditor which 2 14 entitles the cardholder to purchase or lease goods from at 2 15 least 100 persons not related to the card issuer. Subsection 2 16 6 provides that if the differential treatment based upon the 2 17 number of persons honoring a credit card is unconstitutional, 2 18 a creditor may receive a maximum finance charge of 22 percent 2 19 per year for a loan pursuant to open-end credit. 2 20 Sections 537.2501 and 537.2502 are amended to provide that 2 21 the maximum $10 over-limit charge and the maximum $10 2 22 delinquency charge apply to all open-end credit accounts. 2 23 Currently, those maximums apply to credit obtained pursuant to 2 24 a credit card issued by a creditor which entitles the 2 25 cardholder to purchase or lease goods from at least 100 2 26 persons not related to the card issuer. 2 27 LSB 3880HH 76 2 28 mj/sc/14
Text: HF02196 Text: HF02198 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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