House File 235 - Enrolled House File 235 AN ACT RELATING TO SERVICE CHARGES ON CONSUMER CREDIT TRANSACTIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: Section 1. Section 537.2501, subsection 1, paragraph l, Code 2021, is amended to read as follows: l. For an interest-bearing a consumer credit transaction, a service charge in an amount not to exceed the lesser of ten percent of the amount financed or thirty dollars. Sec. 2. Section 537.2510, subsection 3, paragraph a, Code 2021, is amended to read as follows: a. If the prepayment is in full, the creditor may collect or retain a minimum charge not exceeding five dollars in a transaction which had an amount financed of seventy-five dollars or less, or not exceeding seven dollars and fifty cents in a transaction which had an amount financed of more than seventy-five dollars, if the minimum charge was contracted for, and the finance charge earned at the time of prepayment is less than the minimum charge contracted for. If, however, a creditor has collected a service charge in association with an interest-bearing a consumer credit transaction pursuant to section 537.2501, subsection 1 , paragraph “l” , the creditor

House File 235, p. 2 shall not collect or retain a minimum charge upon prepayment pursuant to this subsection . ______________________________ PAT GRASSLEY Speaker of the House ______________________________ JAKE CHAPMAN President of the Senate I hereby certify that this bill originated in the House and is known as House File 235, Eighty-ninth General Assembly. ______________________________ MEGHAN NELSON Chief Clerk of the House Approved _______________, 2021 ______________________________ KIM REYNOLDS Governor