Senate File 252

                                       SENATE FILE       
                                       BY  BOLKCOM


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to credit counseling services for delayed deposit
  2    services customers and making penalties applicable.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2531SS 80
  5 jj/cl/14

PAG LIN

  1  1    Section 1.  NEW SECTION.  533D.17  DEBT MANAGEMENT SERVICE
  1  2 REFERRAL.
  1  3    Upon a second transaction by a delayed deposit services
  1  4 customer, a licensee shall provide the delayed deposit
  1  5 services customer with information regarding debt management
  1  6 businesses in the customer's area, licensed pursuant to
  1  7 chapter 533A, where the customer may receive credit counseling
  1  8 services.
  1  9                           EXPLANATION
  1 10    This bill adds a new section to Code chapter 533D,
  1 11 regarding delayed deposit services, more commonly known as
  1 12 payday loans.  The bill requires the licensee to give the
  1 13 customer information regarding credit counseling services in
  1 14 the area upon the customer's second delayed deposit
  1 15 transaction.  A person who violates the chapter may be ordered
  1 16 to pay a fine of not more than $5,000, and the costs of
  1 17 investigations, pursuant to Code section 533D.14.  Failure to
  1 18 pay a fine and the costs of investigation constitute a
  1 19 separate violation of that Code section.  Either type of
  1 20 violation may support the suspension or revocation of a
  1 21 license granted under the chapter pursuant to Code section
  1 22 533D.12.  In addition, the superintendent may also issue a
  1 23 cease and desist order, injunction, restraining order, or writ
  1 24 of mandamus under Code section 533D.13.
  1 25 LSB 2531SS 80
  1 26 jj/cl/14
  1 27
  1 28
  1 29
  1 30
  1 31
  1 32
  1 33
  1 34
  1 35