Text: HF02321 Text: HF02323 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 537.1301, subsection 41, paragraph b,
1 2 Code 2001, is amended to read as follows:
1 3 b. Privileges or benefits with respect to transportation,
1 4 hotel and restaurant accommodations, communications services,
1 5 education, entertainment, recreation, physical culture,
1 6 hospital accommodations, funerals, cemetery accommodations,
1 7 and the like.
1 8 Sec. 2. Section 537.3310, subsection 2, Code 2001, is
1 9 amended to read as follows:
1 10 2. If the consumer exercises the right to cancel or, in
1 11 any event, if the creditor attempts to exercise a right to
1 12 accelerate, the creditor is entitled to recover or retain only
1 13 that part of the cash price and charges attributable to the
1 14 part of the creditor's obligation which has been performed.
1 15 Sec. 3. Section 537.3310, Code 2001, is amended by adding
1 16 the following new subsection:
1 17 NEW SUBSECTION. 6. Subsections 1 through 4 apply to all
1 18 contracts for wireless communications service of four months
1 19 or more in length. For purposes of this subsection, "wireless
1 20 communications service" shall have the meaning as defined in
1 21 section 34A.7A.
1 22 Sec. 4. EFFECTIVE DATE. This Act, being deemed of
1 23 immediate importance, takes effect upon enactment.
1 24 EXPLANATION
1 25 This bill amends Code section 537.3310, regarding executory
1 26 contracts in consumer credit transactions covered by the
1 27 consumer credit code. An executory contract is a contract
1 28 that has not been fully completed or performed. In general,
1 29 Code section 537.3310 permits a consumer to cancel future
1 30 installments in a consumer credit transaction of four
1 31 installments or more, other than a rental purchase agreement.
1 32 Current Code language in Code section 537.3310 provides
1 33 that a creditor may recover only what charges are attributable
1 34 to what has actually been performed under the contract. The
1 35 bill adds that the creditor may only retain such charges, as
2 1 well.
2 2 In addition, the bill states that subsections 1 through 4
2 3 of Code section 537.3310 apply to all contracts for wireless
2 4 communications service of four months or more in length.
2 5 "Wireless communications service" is given the same meaning as
2 6 in Code section 34A.7A. That Code section addresses the
2 7 surcharge for E911 service, and the definition includes
2 8 cellular telephones and personal communications service. This
2 9 new subsection would mean wireless communications customers
2 10 could cancel a contract after four months of service, by
2 11 mailed or delivered written notice of cancellation. A
2 12 wireless communications service provider could not exercise a
2 13 right to accelerate the terms of the contract upon such
2 14 termination, or otherwise retain or recover amounts other than
2 15 what had been earned for performance of services to that date.
2 16 A consumer whose rights have been violated under this
2 17 section has a cause of action under Code section 537.5201 to
2 18 recover actual damages, and a penalty between $100 and $1000,
2 19 as determined by the court. If successful, the consumer may
2 20 also recover costs and reasonable attorney fees.
2 21 The bill takes effect upon enactment.
2 22 LSB 5912HH 79
2 23 jj/sh/8
Text: HF02321 Text: HF02323 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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