Senate File 2053 - Introduced 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 advertising for delayed deposit services and 2 consumer loans secured by a motor vehicle and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5228SS 81 6 kk/cf/24 PAG LIN 1 1 Section 1. NEW SECTION. 533D.10A ADVERTISING. 1 2 Any advertising through television, radio, or newspaper for 1 3 delayed deposit services transacted under this chapter shall 1 4 state the average interest rate as an annual percentage rate 1 5 charged by the licensee for a delayed deposit service. 1 6 Sec. 2. NEW SECTION. 537.3209A ADVERTISING FOR CONSUMER 1 7 LOANS SECURED BY A MOTOR VEHICLE. 1 8 Any advertising through television, radio, or newspaper for 1 9 a consumer loan secured by a certificate of title to a motor 1 10 vehicle used for a personal, family, or household purpose 1 11 shall state the average interest rate as an annual percentage 1 12 rate charged by the lender for the consumer loan. 1 13 Sec. 3. Section 537.5201, subsection 1, Code 2005, is 1 14 amended by adding the following new paragraph: 1 15 NEW PARAGRAPH. bb. Restrictions on advertising for 1 16 consumer loans secured by a motor vehicle under section 1 17 537.3209A. 1 18 EXPLANATION 1 19 This bill relates to advertising for delayed deposit 1 20 services or a consumer loan secured by a certificate of title 1 21 to a motor vehicle. The bill requires that advertising for 1 22 delayed deposit services include the average interest rate 1 23 charged by the lender for a delayed deposit service. The bill 1 24 requires that advertising for a consumer loan secured by a 1 25 motor vehicle include the interest rate charged by the lender 1 26 for a consumer loan secured by a motor vehicle. The average 1 27 interest rate must be displayed as an annual percentage rate. 1 28 The penalty for violating the advertising restriction 1 29 relating to delayed deposit services is the same as for any 1 30 other violation of Code chapter 533D, including suspension or 1 31 revocation of a license to provide delayed deposit services, 1 32 issuance of a cease and desist order by the superintendent of 1 33 banking, and issuance of an administrative penalty of not more 1 34 than $5,000 for each violation. 1 35 The bill provides that a consumer injured by a violation of 2 1 the advertising restriction relating to consumer loans secured 2 2 by a motor vehicle has a cause of action against the lender 2 3 for actual damages and a penalty of not less than $100 and not 2 4 more than $1,000 per violation pursuant to Code section 2 5 537.5201. 2 6 LSB 5228SS 81 2 7 kk:nh/cf/24