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House Study Bill 285

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 537.2501, subsection 1, paragraph f,
  1  2 unnumbered paragraph 1, Code 1995, is amended to read as
  1  3 follows:
  1  4    With respect to open-end credit pursuant to a credit card
  1  5 issued by the creditor which entitles the cardholder to
  1  6 purchase or lease goods or services from at least one hundred
  1  7 persons not related to the card issuer, the parties may
  1  8 contract for an over-limit charge not to exceed ten fifteen
  1  9 dollars if the balance of the account exceeds the credit limit
  1 10 established pursuant to the agreement.  The over-limit charge
  1 11 under this paragraph shall not be assessed again in a
  1 12 subsequent billing cycle unless in a subsequent billing cycle
  1 13 the account balance has been reduced below the credit limit.
  1 14    Sec. 2.  Section 537.2501, subsection 2, paragraph b,
  1 15 subparagraph (2), Code 1995, is amended to read as follows:
  1 16    (2)  The insurance shall be sold separately and shall be
  1 17 separately priced from any other insurance offered or sold at
  1 18 the same time.  The credit unemployment insurance need not be
  1 19 sold separately or separately priced from other insurance
  1 20 offered if it is included as part of a mailed insurance
  1 21 offering by a credit card issuer to its credit cardholders.
  1 22 However, credit unemployment insurance shall not be sold in
  1 23 conjunction with an application for a credit card or for the
  1 24 renewal of a credit card.
  1 25    Sec. 3.  Section 537.2502, subsection 4, Code 1995, is
  1 26 amended to read as follows:
  1 27    4.  With respect to open-end credit obtained pursuant to a
  1 28 credit card issued by the creditor which entitles the
  1 29 cardholder to purchase or lease goods or services from at
  1 30 least one hundred persons not related to the card issuer, the
  1 31 parties may contract for a delinquency charge on any payment
  1 32 not paid in full within ten days after its when due date, as
  1 33 originally scheduled or as deferred, in an amount not to
  1 34 exceed ten fifteen dollars.
  1 35    Sec. 4.  Section 537.2502, subsection 5, Code 1995, is
  2  1 amended to read as follows:
  2  2    5.  A delinquency charge under subsection 4 may be
  2  3 collected only once on a payment however long it remains in
  2  4 default.  No A delinquency charge may shall not be collected
  2  5 with respect to a deferred payment unless the payment is not
  2  6 paid in full within ten days after on or before its deferred
  2  7 due date.  A delinquency charge may be collected at the time
  2  8 it accrues or at any time afterward.
  2  9    Sec. 5.  Section 537.2502, subsection 6, Code 1995, is
  2 10 amended to read as follows:
  2 11    6.  No A delinquency charge may shall not be collected
  2 12 under subsection 4 on a payment which is paid in full within
  2 13 ten days after on or before its scheduled or deferred due date
  2 14 even though an earlier maturing payment or a delinquency or
  2 15 deferred charge on an earlier payment has not been paid in
  2 16 full.  For purposes of this subsection, payments are applied
  2 17 first to amounts due for the current billing cycle and then to
  2 18 delinquent payments.  
  2 19                           EXPLANATION
  2 20    This bill amends provisions of the consumer credit code
  2 21 relating to open-end credit obtained pursuant to a credit card
  2 22 issued by a creditor which entitle the cardholder to purchase
  2 23 or lease goods or services from at least 100 persons not
  2 24 related to the card issuer.
  2 25    Section 537.2501 is amended to provide that the creditor
  2 26 and the cardholder may contract for an over-limit charge not
  2 27 to exceed $15.  Currently, that charge is limited to $10.  The
  2 28 section is also amended to strike language which prohibits
  2 29 credit unemployment insurance from being sold in conjunction
  2 30 with an application for, or renewal of, a credit card.
  2 31    Section 537.2502 is amended to provide that the creditor
  2 32 and the cardholder may contract for a delinquency charge on
  2 33 any payment which is not paid in full when due in an amount
  2 34 not to exceed $15.  Currently, payment must be made within 10
  2 35 days after the due date and the charge is limited to $10.
  3  1 Section 537.2502 is also amended to provide that a delinquency
  3  2 charge with respect to a deferred payment shall not be
  3  3 collected unless the payment is not paid in full on or before
  3  4 its deferred due date.  Currently, such payment must be made
  3  5 within 10 days after its deferred due date to avoid the
  3  6 delinquency charge.  
  3  7 LSB 2481HC 76
  3  8 mj/sc/14
     
Text: HSB00284                          Text: HSB00286
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index
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