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Senate File 2083

Partial Bill History

Bill Introduced: S.J. 179.2
Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 533D.9, Code 2003, is amended to read
  1  2 as follows:
  1  3    533D.9  FEE RESTRICTION – REQUIRED DISCLOSURE.
  1  4    1.  A licensee shall not charge, contract for, or directly
  1  5 or indirectly receive any interest, fees, or charges, except
  1  6 those specifically authorized by this section:
  1  7    a.  TRANSACTION FEE.  A licensee shall not charge a fee in
  1  8 excess of fifteen five dollars on the first one per hundred
  1  9 dollars on the face amount of a check or more than ten dollars
  1 10 on subsequent one hundred dollar increments on the face amount
  1 11 of the check for services provided by the licensee, or pro
  1 12 rata for any portion of one hundred dollars face value the
  1 13 amount financed.  However, the licensee may receive a minimum
  1 14 charge of five dollars when the amount financed exceeds
  1 15 seventy-five dollars, or three dollars and fifty cents when
  1 16 the amount financed exceeds fifty dollars.
  1 17    b.  DEFAULT FEE.  If the check is not negotiable on the
  1 18 date agreed upon, a licensee may charge a default fee, not to
  1 19 exceed fifteen dollars.  Only one such fee may be collected
  1 20 with respect to a check even if it has been redeposited and
  1 21 returned more than once, no matter how long the check remains
  1 22 unpaid.  A fee charged pursuant to this section is a
  1 23 licensee's exclusive remedy and charge for late payment or
  1 24 nonpayment.
  1 25    2.  A licensee shall give to the maker of the check, at the
  1 26 time any delayed deposit service transaction is made, or if
  1 27 there are two or more makers, to one of them, notice written
  1 28 in clear, understandable language disclosing all of the
  1 29 following:
  1 30    a.  The transaction fee to be charged for the transaction.
  1 31    b.  The annual percentage rate on the first hundred dollars
  1 32 on the face amount of the check which the fee represents, and
  1 33 the annual percentage rate on subsequent one hundred dollar
  1 34 increments which the fee represents, if different transaction.
  1 35    c.  The date on which the check will be deposited or
  2  1 presented for negotiation.
  2  2    d.  Any penalty, not to exceed fifteen dollars, which The
  2  3 default fee that the licensee will charge if the check is not
  2  4 negotiable on the date agreed upon.  A penalty The notice
  2  5 shall state that the default fee to be charged pursuant to
  2  6 this section shall only be collected by the licensee once on a
  2  7 check no matter how long the check remains unpaid.  A penalty;
  2  8 and that a default fee to be charged pursuant to this section
  2  9 is a licensee's exclusive remedy and if a licensee charges a
  2 10 penalty default fee pursuant to this section no other
  2 11 penalties under this chapter or any other provision apply.
  2 12    3.  In addition to the notice required by subsection 2,
  2 13 every licensee shall conspicuously display a schedule of all
  2 14 fees, charges, and penalties for all services provided by the
  2 15 licensee authorized by this section.  The notice shall be
  2 16 posted at the office and every branch office of the licensee.
  2 17 The licensee shall provide a written schedule of the fees,
  2 18 charges, interest rates, and penalties upon request.
  2 19    4.  The licensee shall make all notices and disclosures
  2 20 required under this section available in the languages spoken
  2 21 by consumers who frequent that location.
  2 22    Sec. 2.  Section 533D.10, Code 2003, is amended to read as
  2 23 follows:
  2 24    533D.10  PROHIBITED ACTS BY LICENSEE.
  2 25    1.  A licensee shall not do any of the following:
  2 26    a.  Hold from any one maker more than two checks one check
  2 27 at any one time.
  2 28    b.  Hold from any one maker a check or checks in an
  2 29 aggregate face amount of more than five three hundred dollars
  2 30 at any one time.
  2 31    c.  Hold or agree to hold a check for more less than
  2 32 thirty-one thirty days.
  2 33    d.  Require the maker to receive payment by a method which
  2 34 that causes the maker to pay additional or further fees and
  2 35 charges to the licensee or another person.
  3  1    e.  Repay, refinance, or otherwise consolidate a postdated
  3  2 check transaction with the proceeds of another postdated check
  3  3 transaction made by the same licensee.
  3  4    f.  Receive any other charges or fees in addition to the
  3  5 fees listed in section 533D.9, subsections subsection 1 and 2.
  3  6    g.  The termination of a delayed deposit transaction either
  3  7 through the payment of the consumer's check by the drawee
  3  8 bank, through the return of the check to a consumer who
  3  9 redeems it for consideration, through expiration of the
  3 10 check's maturity date, or through any other method of
  3 11 termination.  The licensee shall not enter into another
  3 12 delayed deposit transaction with the same consumer for at
  3 13 least two days after the termination of a delayed deposit
  3 14 transaction either through the payment of the consumer's check
  3 15 by the drawee bank, through the return of the check to a
  3 16 consumer who redeems it for consideration, through expiration
  3 17 of the check's maturity date, or through any other method of
  3 18 termination.  However, the licensee may extend the term of the
  3 19 loan without charge.
  3 20    2.  For purposes of this section, "licensee" includes a
  3 21 person related to the licensee by common ownership or control,
  3 22 a person in whom the licensee has any financial interest, or
  3 23 any employee or agent of the licensee.  
  3 24                           EXPLANATION
  3 25    This bill makes amendments to Code chapter 533D, delayed
  3 26 deposit services, more commonly known as payday loans.
  3 27    The bill specifically amends Code section 533D.9 to require
  3 28 licensees to limit the fees that can be charged in connection
  3 29 with a delayed deposit transaction, to make available upon
  3 30 request written schedules of charges, fees, penalties, and
  3 31 interest rates that are posted on location, and to provide
  3 32 that notices and disclosures be provided in languages spoken
  3 33 by the consumers.
  3 34    The bill also amends Code section 533D.10 to prohibit a
  3 35 licensee from holding more than one check from a maker at any
  4  1 one time, limiting that check to $300 instead of $500, and
  4  2 requiring at least a two-day waiting period at the conclusion
  4  3 of a delayed deposit transaction before entering into another
  4  4 transaction with the same consumer.  The bill strikes the 31-
  4  5 day maximum loan period and provides for a minimum loan period
  4  6 of 30 days.  
  4  7 LSB 5822XS 80
  4  8 kk/cf/24

Text: SF02082                           Text: SF02084
Text: SF02000 - SF02099                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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