Text: HF00255 Text: HF00257 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.1301, subsection 42, Code 1997, is 1 2 amended to read as follows: 1 3 42. "Supervised financial organization" means a person, 1 4 other than an insurance company or other organization 1 5 primarily engaged in an insurance business, which is 1 6 organized, chartered, or holding an authorization certificate 1 7 pursuant to chapter 524, 533, or 534, or pursuant to the laws 1 8 of any other state or of the United States which authorizes 1 9 the person to make loans and to receive deposits, including a 1 10 savings, share, certificate or deposit account, and which is 1 11 subject to supervision by an official or agency of this state, 1 12 such other state, or of the United States. 1 13 Sec. 2. Section 537.2202, subsection 1, Code 1997, is 1 14 amended to read as follows: 1 15 1. With respect to a consumer credit sale made pursuant to 1 16 open end credit, a creditor may contract for and receive a 1 17 finance chargenot exceeding thatwithout limitation as to 1 18 amount or rate as permitted in this section. 1 19 Sec. 3. Section 537.2202, subsection 3, Code 1997, is 1 20 amended by striking the subsection. 1 21 Sec. 4. Section 537.2402, subsection 1, Code 1997, is 1 22 amended to read as follows: 1 23 1. If authorized to make supervised loans, a creditor may 1 24 contract for and receive a finance charge without limitation 1 25 as to amount or rate with respect to a loan pursuant to open- 1 26 end creditnot exceeding thatas permitted in this section. 1 27 Sec. 5. Section 537.2402, subsections 3, 5, and 6, Code 1 28 1997, are amended by striking the subsections. 1 29 Sec. 6. Section 537.2501, subsection 1, paragraph f, 1 30 unnumbered paragraph 1, Code 1997, is amended to read as 1 31 follows: 1 32 With respect to open-end creditpursuant to a credit card1 33issued by the creditor which entitles the cardholder to1 34purchase or lease goods or services from at least one hundred1 35persons not related to the card issuer, the parties may 2 1 contract for an over-limit charge up to fifteen dollars if the 2 2 balance of the account exceeds the credit limit established 2 3 pursuant to the agreement. The over-limit charge under this 2 4 paragraph shall not be assessed again in a subsequent billing 2 5 cycle unless in a subsequent billing cycle the account balance 2 6 has been reduced below the credit limit. 2 7 Sec. 7. Section 537.2502, subsection 4, Code 1997, is 2 8 amended to read as follows: 2 9 4. With respect to open-end creditobtained pursuant to a2 10credit card issued by the creditor which entitles the2 11cardholder to purchase or lease goods or services from at2 12least one hundred persons not related to the card issuer, the 2 13 parties may contract for a delinquency charge on any payment 2 14 not paid in full when due, as originally scheduled or as 2 15 deferred, in an amount up to fifteen dollars. 2 16 Sec. 8. Section 537.2502, subsections 7 and 8, Code 1997, 2 17 are amended by striking the subsections. 2 18 EXPLANATION 2 19 This bill amends provisions relating to the permissible 2 20 charges which may be contracted for with respect to a consumer 2 21 credit sale or a loan pursuant to open-end credit. 2 22 Code section 537.1301 is amended to include a financial 2 23 institution holding an authorization certificate pursuant to 2 24 the laws of another state under the definition of a supervised 2 25 financial organization for purposes of the consumer credit 2 26 code. 2 27 Code section 537.2202 is amended to provide that a creditor 2 28 may contract for and receive a finance charge without 2 29 limitation as to amount or rate with respect to a consumer 2 30 credit sale made pursuant to open end-credit. Currently, if 2 31 the billing cycle is monthly, the finance charge may not 2 32 exceed 1.65 percent. 2 33 Code section 537.2402 is amended to provide that a creditor 2 34 authorized to make supervised loans may contract for and 2 35 receive a finance charge without limitation as to amount or 3 1 rate with respect to open-end credit as permitted in the 3 2 section. Subsections 3, 5, and 6, which currently establish 3 3 limitations on the finance charge, are stricken. Subsection 3 3 4 limits the finance charge, for open-end credit subject to a 3 5 monthly billing cycle, to an amount equal to 1.65 percent of 3 6 the maximum balance amount as determined under subsection 2. 3 7 Subsection 5 provides that a creditor may contract and receive 3 8 a finance charge without limitation with respect to a loan 3 9 pursuant to open-end credit obtained pursuant to a credit card 3 10 issued by a creditor which entitles the cardholder to purchase 3 11 or lease goods from at least 100 persons not related to the 3 12 card issuer. Subsection 6 provides that if the differential 3 13 treatment based upon the number of persons honoring a credit 3 14 card is unconstitutional, a creditor may receive a maximum 3 15 finance charge of 22 percent per year for a loan pursuant to 3 16 open-end credit. 3 17 Code sections 537.2501 and 537.2502 are amended to provide 3 18 that the over-limit charge of up to $15 and the delinquency 3 19 charge of up to $15 apply to all open-end credit accounts. 3 20 Currently, those charges apply to credit obtained pursuant to 3 21 a credit card issued by a creditor which entitles the 3 22 cardholder to purchase or lease goods from at least 100 3 23 persons not related to the card issuer. 3 24 Subsections 7 and 8 of Code section 537.2502, which pertain 3 25 to delinquency charges, are stricken. Subsection 7 provides 3 26 that if the differential treatment based upon the number of 3 27 persons honoring a credit card is unconstitutional, the 3 28 parties may contract for a delinquency charge in an amount up 3 29 to $15 in any consumer credit transaction pursuant to open-end 3 30 credit. Subsection 8 provides that with respect to open-end 3 31 credit obtained pursuant to a credit card issued by the 3 32 creditor which entitles the cardholder to purchase or lease 3 33 goods or services from less than 100 persons not related to 3 34 the card issuer, the parties may contract for a delinquency 3 35 charge on any payment not paid in full within 30 days after 4 1 its due date, as originally scheduled or as deferred, in an 4 2 amount not to exceed $10. The subsection provides that a 4 3 delinquency charge is not to be collected more than once on 4 4 any one payment, regardless of the length of time the payment 4 5 remains delinquent. 4 6 LSB 1910HH 77 4 7 mj/sc/14
Text: HF00255 Text: HF00257 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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