Text: HF02148                           Text: HF02150
Text: HF02100 - HF02199                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 2149

Partial Bill History

Bill Introduced: H.J. 162
Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 537.2501, Code Supplement 1999, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  4.  A creditor shall not contract for or
  1  4 receive an additional charge for any prepayment made or credit
  1  5 balance maintained by a consumer on an account for payment of
  1  6 goods or services.
  1  7    Sec. 2.  Section 537.2502, subsections 3 and 6, Code
  1  8 Supplement 1999, are amended to read as follows:
  1  9    3.  A delinquency charge shall not be collected under
  1 10 subsection 1 on an either of the following:
  1 11    a.  An installment which is paid in full within ten days
  1 12 after its scheduled or deferred installment due date even
  1 13 though an earlier maturing installment or a delinquency or
  1 14 deferral charge on an earlier installment may not have been
  1 15 paid in full.  For purposes of this subsection payments are
  1 16 applied first to current installments and then to delinquent
  1 17 installments.
  1 18    b.  A prepayment made or credit balance maintained by the
  1 19 consumer in accordance with section 537.2501.
  1 20    6.  A delinquency charge shall not be collected under
  1 21 subsection 4 on a either of the following:
  1 22    a.  A payment which is paid in full on or before its
  1 23 scheduled or deferred due date even though an earlier maturing
  1 24 payment or a delinquency or deferred charge on an earlier
  1 25 payment has not been paid in full.  For purposes of this
  1 26 subsection, payments are applied first to amounts due for the
  1 27 current billing cycle and then to delinquent payments.
  1 28    b.  A prepayment made or credit balance maintained by the
  1 29 consumer in accordance with section 537.2501.
  1 30    Sec. 3.  Section 537.2601, Code 1999, is amended to read as
  1 31 follows:
  1 32    537.2601  CHARGES FOR OTHER CREDIT TRANSACTIONS.
  1 33    1.  Except as provided in subsection 2, with With respect
  1 34 to a credit transaction other than a consumer credit
  1 35 transaction, the parties may contract for the payment by the
  2  1 debtor of any finance or other charge as permitted by law,
  2  2 except as follows:
  2  3    a.  With respect to a credit transaction which would be a
  2  4 consumer credit transaction if a finance charge were made, a
  2  5 charge for delinquency may not exceed amounts allowed for
  2  6 finance charges for consumer credit sales pursuant to open-end
  2  7 credit.
  2  8    b.  A creditor shall not contract for or receive an
  2  9 additional charge for any prepayment made or credit balance
  2 10 maintained by a consumer on an account for payment of goods or
  2 11 services.
  2 12    2.  Except with respect to debt obligations issued by a
  2 13 government, governmental agency or instrumentality, in
  2 14 calculating any finance charge contracted for, any month may
  2 15 be counted as one-twelfth of a year, but a day is to be
  2 16 counted as one three-hundred sixty-fifth of a year.
  2 17    2.  With respect to a credit transaction which would be a
  2 18 consumer credit transaction if a finance charge were made, a
  2 19 charge for delinquency may not exceed amounts allowed for
  2 20 finance charges for consumer credit sales pursuant to open end
  2 21 credit.
  2 22    Sec. 4.  Section 537.5301, Code 1999, is amended by adding
  2 23 the following new subsection:
  2 24    NEW SUBSECTION.  1A.  A person who willfully and knowingly
  2 25 makes additional charges in violation of the following
  2 26 sections shall be subject to a fine in the amount of ten times
  2 27 the amount of the additional charge made to the consumer:
  2 28    a.  Section 537.2501, subsection 4.
  2 29    b.  Section 537.2502, subsection 3, paragraph "b".
  2 30    c.  Section 537.2502, subsection 6, paragraph "b".
  2 31    d.  Section 537.2601, subsection 1, paragraph "b".  
  2 32                           EXPLANATION
  2 33    This bill amends certain sections of Code chapter 537
  2 34 pertaining to additional charges made under the consumer
  2 35 credit code.
  3  1    The bill prohibits a creditor from assessing an additional
  3  2 charge, in the form of a delinquency charge or otherwise, when
  3  3 a consumer makes a prepayment or maintains a credit balance on
  3  4 an account for goods or services.
  3  5    Violations of the prohibition are punishable with a fine in
  3  6 the amount of 10 times the amount of the additional charge
  3  7 made to the consumer.
  3  8    If the additional charge is assessed in connection with a
  3  9 credit transaction other than a consumer credit transaction as
  3 10 defined in the Code chapter, the consumer also has a cause of
  3 11 action to recover actual damages and a right to recover a
  3 12 penalty in an amount determined by the court, but not less
  3 13 than $100 nor more than $1,000.  
  3 14 LSB 5899YH 78
  3 15 jj/cls/14

Text: HF02148                           Text: HF02150
Text: HF02100 - HF02199                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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