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Senate File 2104

Partial Bill History

Bill Introduced: S.J. 155
Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 533D.9, Code 2001, is amended to read
  1  2 as follows:
  1  3    533D.9  FEE RESTRICTION – REQUIRED DISCLOSURE.
  1  4    1.  a.  A licensee shall not charge a transaction fee in
  1  5 excess of fifteen five dollars on the first per one hundred
  1  6 dollars on the face amount of a check or more than ten dollars
  1  7 on subsequent one hundred dollar increments on the face amount
  1  8 of the check of the amount financed for services provided by
  1  9 the licensee, or pro rata for any portion of one hundred
  1 10 dollars face value.
  1 11    b.  If the check is not negotiable on the date agreed upon,
  1 12 a licensee may charge a default fee, not to exceed fifteen
  1 13 dollars.  Only one such fee may be collected with respect to a
  1 14 check even if it has been redeposited and returned more than
  1 15 once, no matter how long the check remains unpaid.  A fee
  1 16 charged pursuant to this subsection is a licensee's exclusive
  1 17 remedy and charge for late payment or nonpayment.
  1 18    2.  A licensee shall give to the maker of the check, at the
  1 19 time any delayed deposit service transaction is made, or if
  1 20 there are two or more makers, to one of them, notice written
  1 21 in clear, understandable language disclosing all of the
  1 22 following:
  1 23    a.  The transaction fee to be charged for the transaction.
  1 24    b.  The annual percentage rate on the first hundred dollars
  1 25 on the face amount of the check which the fee represents, and
  1 26 the annual percentage rate on subsequent one hundred dollar
  1 27 increments which the fee represents, if different transaction.
  1 28    c.  The date on which the check will be deposited or
  1 29 presented for negotiation.
  1 30    d.  Any penalty The default fee, not to exceed fifteen
  1 31 dollars, which that the licensee will charge if the check is
  1 32 not negotiable on the date agreed upon.  A penalty The notice
  1 33 shall state that the default fee to be charged pursuant to
  1 34 this section shall only be collected by the licensee once on a
  1 35 check no matter how long the check remains unpaid.  A penalty;
  2  1 a default fee to be charged pursuant to this section is a
  2  2 licensee's exclusive remedy and if a licensee charges a
  2  3 penalty default fee pursuant to this section no other
  2  4 penalties under this chapter or any other provision apply.
  2  5    3.  In addition to the notice required by subsection 2,
  2  6 every licensee shall conspicuously display a schedule of all
  2  7 fees, charges, and penalties for all services provided by the
  2  8 licensee authorized by this section.  The notice shall be
  2  9 posted at the office and every branch office of the licensee.
  2 10 The licensee shall provide a written schedule of the fees,
  2 11 charges, interest rates, and penalties upon request.
  2 12    4.  The licensee shall make all notices and disclosures
  2 13 required under this section available in the languages spoken
  2 14 by consumers who frequent that location.
  2 15    Sec. 2.  Section 533D.10, subsection 1, Code 2001, is
  2 16 amended to read as follows:
  2 17    1.  A licensee shall not do any of the following:
  2 18    a.  Hold from any one maker more than two checks one check
  2 19 at any one time.
  2 20    b.  Hold from any one maker a check or checks in an
  2 21 aggregate face amount of more than five three hundred dollars
  2 22 at any one time.
  2 23    c.  Hold or agree to hold a check for more than thirty-one
  2 24 days.
  2 25    d.  Require the maker to receive payment by a method which
  2 26 that causes the maker to pay additional or further fees and
  2 27 charges to the licensee or another person, or otherwise charge
  2 28 to cash a check representing the proceeds of the transaction.
  2 29    e.  Repay, refinance, or otherwise consolidate a postdated
  2 30 check transaction with the proceeds of another postdated check
  2 31 transaction made by the same licensee.  Upon payment of the
  2 32 maker's check by the drawee bank, the return of a check to a
  2 33 maker who redeems it for consideration, or any other method of
  2 34 termination of the delayed deposit transaction, the licensee
  2 35 shall not enter into another delayed deposit transaction with
  3  1 the same maker for at least two days thereafter provided,
  3  2 however, that a licensee may extend the delay of the deposit
  3  3 of the check without charge.
  3  4    f.  Receive any other charges or fees in addition to the
  3  5 fees listed in section 533D.9, subsections 1 and 2.
  3  6    Sec. 3.  NEW SECTION.  533D.17  REPORTING.
  3  7    1.  The superintendent shall annually collect, and
  3  8 licensees shall provide, information regarding at least the
  3  9 following:
  3 10    a.  The total number of delayed deposit transactions made
  3 11 at each location.
  3 12    b.  The total amount of money subject to delayed deposit
  3 13 transactions at each location.
  3 14    c.  The total amount of bad debt incurred at each location.
  3 15    d.  Affiliate relationships, if any, of each licensee with
  3 16 any financial institutions.
  3 17    2.  The superintendent may adopt rules pursuant to chapter
  3 18 17A related to these reporting requirements.  
  3 19                           EXPLANATION
  3 20    This bill makes amendments to Code chapter 533D, delayed
  3 21 deposit services, more commonly known as payday loans.
  3 22    The bill amends Code section 533.9 to provide that a
  3 23 licensee may charge a transaction fee of $5 per $100 of the
  3 24 amount financed, rather than the current fee maximum of $15 on
  3 25 the first $100 financed, and $10 for subsequent $100
  3 26 increments.
  3 27    The bill also amends Code section 533.9 to require
  3 28 licensees to make written information regarding charges, fees,
  3 29 penalties, and interest rates available upon request, and to
  3 30 provide that notices and disclosures be provided in languages
  3 31 spoken by the consumers who frequent that location.
  3 32    The bill amends Code section 533.10 to provide that the
  3 33 licensee shall not enter into more than one transaction with a
  3 34 maker at one time, and that the licensee must wait two days
  3 35 after termination of a transaction through cashing the maker's
  4  1 check before entering into another delayed deposit transaction
  4  2 with the same maker.  The bill also changes the maximum amount
  4  3 of the transaction to $300, rather than $500.
  4  4    The bill creates new Code section 533D.17, which requires
  4  5 licensees to report, and the superintendent to collect,
  4  6 information regarding delayed deposit transactions made, and
  4  7 affiliate relationships with other financial institutions.  
  4  8 LSB 6555XS 79
  4  9 jj/cf/24

Text: SF02103                           Text: SF02105
Text: SF02100 - SF02199                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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