House File 135 - Introduced



                                       HOUSE FILE       
                                       BY  VAN ENGELENHOVEN


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

                                      A BILL FOR

  1 An Act relating to the disclosure of the annual percentage rate
  2    for a delayed deposit service transaction.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1762YH 81
  5 kk/gg/14

PAG LIN



  1  1    Section 1.  Section 533D.9, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  4.  In addition to the requirements of
  1  4 subsection 2, a licensee shall disclose the corresponding
  1  5 annual percentage rate for the delayed deposit service
  1  6 transaction on all documents related to the transaction.
  1  7                           EXPLANATION
  1  8    This bill requires a delayed deposit services licensee to
  1  9 provide the corresponding annual percentage rate on all
  1 10 documents related to a delayed deposit service transaction,
  1 11 commonly called a "payday loan".  The requirement of the bill
  1 12 is in addition to existing requirements for a licensee to
  1 13 disclose generally in writing to the borrower the annual
  1 14 percentage rate on the first $100 of the face amount of the
  1 15 check and the annual percentage rate on subsequent $100
  1 16 increments borrowed, if different.
  1 17 LSB 1762YH 81
  1 18 kk:nh/gg/14