Text: SF00489 Text: SF00491 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 533D.9, subsections 2 and 3, Code 2001, 1 2 are amended by striking the subsections. 1 3 Sec. 2. NEW SECTION. 533D.9A REQUIRED DOCUMENTS AND 1 4 DISCLOSURES. 1 5 1. INFORMATION PAMPHLET PROVIDED TO ALL CONSUMERS. Before 1 6 entering into a delayed deposit service transaction, the 1 7 licensee shall deliver to the consumer a pamphlet which 1 8 explains all of the consumer's rights and responsibilities in 1 9 a delayed deposit service transaction, includes a telephone 1 10 number to the superintendent's office to handle concerns or 1 11 complaints by consumers, and informs consumers that the 1 12 superintendent's office can provide information about whether 1 13 a delayed deposit service business is licensed, whether 1 14 complaints have been filed with the superintendent, and the 1 15 resolution of such complaints. 1 16 2. LOAN DOCUMENTS. Licensees shall give the maker of the 1 17 check at the time any delayed deposit service transaction is 1 18 made, or if there are two or more makers, to at least one of 1 19 them, a written agreement in clear, understandable English, on 1 20 a form specified or approved by the superintendent, in a form 1 21 the consumer can keep, that includes all of the following 1 22 information: 1 23 a. The name, address, and telephone number of the licensee 1 24 making the delayed deposit loan, and the name and title of the 1 25 individual employee who signs the agreement on behalf of the 1 26 licensee. 1 27 b. An itemization of fees and charges to be paid by the 1 28 consumers, including the annual percentage rate on the first 1 29 hundred dollars on the face amount of the check that the fee 1 30 represents, and the annual percentage rate on subsequent one 1 31 hundred dollar increments that the fee represents, if 1 32 different. 1 33 c. The date on which the check will be deposited or 1 34 presented for negotiation. 1 35 d. A clear description of the consumer's payment 2 1 obligations under the transaction. 2 2 e. The penalty, not to exceed fifteen dollars, that the 2 3 licensee will charge if the check is not negotiable on the 2 4 date agreed upon; that it may be collected only once on a 2 5 check no matter how long the check remains unpaid; and that it 2 6 is the licensee's exclusive fee and remedy for late payment or 2 7 nonpayment. 2 8 f. Disclosures required by section 537.3201 and the Truth 2 9 in Lending Act as defined in section 537.1302, irrespective of 2 10 whether the Truth in Lending Act applies to the particular 2 11 delayed deposit service transaction. 2 12 g. Applicable notices pursuant to Iowa law, including, but 2 13 not limited to, that required by section 537.3203. 2 14 h. In a manner that is more conspicuous than the other 2 15 information provided in the loan document, and located 2 16 immediately preceding the signature of the consumer, the 2 17 following notice in at least fourteen point type: "You cannot 2 18 be prosecuted in criminal court to collect this loan." 2 19 3. POSTED NOTICE. Notices must be clearly and 2 20 conspicuously posted by all licensees in each location, which 2 21 informs consumers of the following information: 2 22 a. Informs consumers that the licensee cannot use the 2 23 criminal process against a consumer to collect any delayed 2 24 deposit service transaction check. 2 25 b. Informs the consumers of the schedule of all fees, 2 26 charges, interest, and penalties to be charged on delayed 2 27 deposit service transactions. The schedule shall include an 2 28 example of the amounts that would be charged on a one hundred 2 29 dollar loan payable in fourteen and thirty days, and shall 2 30 provide the corresponding annual percentage rate. 2 31 EXPLANATION 2 32 This bill amends Code chapter 533D, regarding delayed 2 33 deposit service transactions, more commonly known as "payday 2 34 loans". 2 35 The bill deletes disclosure provisions from current Code 3 1 section 533D.9, and creates new Code section 533D.9A 3 2 pertaining to disclosures. 3 3 New Code section 533D.9A sets forth the disclosure 3 4 requirements for delayed deposit service transactions, 3 5 including: (1) an information pamphlet to be furnished to all 3 6 consumers before entering into a loan, that conveys all of the 3 7 consumer's rights and responsibilities, including a telephone 3 8 number to the banking division for questions, concerns, or 3 9 complaints; (2) loan documents written in clear, 3 10 understandable English that include the licensee and 3 11 individual employee signing the agreement; an itemization of 3 12 fees and charges; the date the check will be deposited or 3 13 presented; a clear description of the payment obligations; the 3 14 penalty, and the limitations upon the licensee in charging it; 3 15 disclosures required under the Iowa consumer credit code and 3 16 the federal Truth in Lending Act; and a notice in at least 14 3 17 point type that states: "You cannot be prosecuted in criminal 3 18 court to collect this loan."; (3) posted notices that inform 3 19 consumers of the schedule of all fees, charges, interest, and 3 20 penalties, and that the criminal process cannot be used to 3 21 collect any deferred deposit transaction checks. 3 22 LSB 2376SV 79 3 23 jj/cls/14
Text: SF00489 Text: SF00491 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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