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Text: SF00294                           Text: SF00296
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Senate File 295

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 537.2504, unnumbered paragraph 1, Code
  1  2 1997, is amended to read as follows:
  1  3    With respect to a consumer credit transaction in which the
  1  4 rate of finance charge required to be disclosed in the
  1  5 transaction pursuant to section 537.3201 does not exceed
  1  6 eighteen percent per year, other than a consumer lease or a
  1  7 consumer rental purchase agreement, the creditor may, by
  1  8 agreement with the consumer, refinance the unpaid balance and
  1  9 may contract for and receive a finance charge based on the
  1 10 amount financed resulting from the refinancing at a rate not
  1 11 exceeding that permitted by the provisions on finance charge
  1 12 for consumer credit sales other than open end credit in
  1 13 section 537.2201 if a consumer credit sale is refinanced, the
  1 14 provisions on finance charge for a consumer loan other than a
  1 15 supervised loan in section 537.2401, subsection 1, or the
  1 16 provisions on finance charge for a supervised loan not
  1 17 pursuant to open end credit in section 537.2401, subsection 2,
  1 18 as applicable, if a consumer loan is refinanced.  With respect
  1 19 to a consumer credit transaction in which the rate of finance
  1 20 charge required to be disclosed in the transaction to the
  1 21 consumer pursuant to section 537.3201 exceeds eighteen percent
  1 22 per year, other than a consumer lease or a consumer rental
  1 23 purchase agreement, the creditor may by agreement with the
  1 24 consumer, refinance the unpaid balance and may contract for
  1 25 and receive a finance charge based on the amount financed
  1 26 resulting from the refinancing at a rate of finance charge not
  1 27 to exceed that which was required to be disclosed in the
  1 28 original transaction to the consumer rate permitted for
  1 29 consumer credit sales pursuant to section 537.3201 537.2201 or
  1 30 the rate permitted for consumer loans pursuant to section
  1 31 537.2401, whichever is greater.  For the purpose of
  1 32 determining the finance charge permitted, the amount financed
  1 33 resulting from the refinancing consists of:
  1 34    Sec. 2.  Section 537.2505, subsection 3, Code 1997, is
  1 35 amended by striking the subsection and inserting in lieu
  2  1 thereof the following:
  2  2    3.  Upon the consolidation of any debt arising from or in
  2  3 combination from a consumer credit sale, lender credit card,
  2  4 seller credit card, or consumer loan, the creditor may
  2  5 contract for and receive the finance charge at a rate
  2  6 permitted for consumer credit sales pursuant to section
  2  7 537.2201 or permitted for consumer loans pursuant to section
  2  8 537.2401, whichever is greater.  
  2  9                           EXPLANATION
  2 10    This bill regulates the finance charge that may be imposed
  2 11 for refinancing certain consumer credit transactions in which
  2 12 the rate of interest required to be disclosed pursuant to the
  2 13 federal Truth in Lending Act exceeds 18 percent per year.
  2 14 Currently the permitted rate is based on the amount which was
  2 15 required to be disclosed in the original transaction.  This
  2 16 bill provides that the rate is the same as permitted for
  2 17 consumer credit sales pursuant to Code section 537.2201 or for
  2 18 consumer loans pursuant to Code section 537.2401, whichever is
  2 19 more.
  2 20    The bill also amends a section providing for the
  2 21 consolidation of debts arising from consumer loans, consumer
  2 22 credit sales, lender credit cards, or seller credit cards.
  2 23 Currently, if the consolidated debt arises from consumer loans
  2 24 the finance charge must be the same as for consumer loans as
  2 25 regulated pursuant to Code section 537.2401.  If the
  2 26 consolidation includes a debt arising from a consumer credit
  2 27 sale, or a lender credit card, the rate must be the same as
  2 28 for consumer credit sales as regulated in Code section
  2 29 537.2201.  This bill provides that upon consolidation of any
  2 30 debt arising from a consumer credit sale, lender credit card,
  2 31 seller credit card, or consumer loan, the rate must be the
  2 32 same as provided pursuant to Code section 537.2201 or
  2 33 537.2401, whichever is more.  
  2 34 LSB 1819SV 77
  2 35 da/sc/14
     
Text: SF00294                           Text: SF00296
Text: SF00200 - SF00299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index
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