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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