Senate Study Bill 1099





                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            COMMERCE BILL BY
                                            CO=CHAIRPERSON WARNSTADT)


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

                                      A BILL FOR

  1 An Act relating to debt collection disclosure requirements for
  2    state bank affiliates.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2144SC 81
  5 kk/sh/8

PAG LIN



  1  1    Section 1.  Section 537.1301, Code 2005, is amended by
  1  2 adding the following new subsection:
  1  3    NEW SUBSECTION.  2A.  "Affiliate" means the same as defined
  1  4 in section 524.1101.
  1  5    Sec. 2.  Section 537.7103, subsection 4, paragraph b,
  1  6 subparagraph (2), Code 2005, is amended to read as follows:
  1  7    (2)  Communications issued directly by a state bank as
  1  8 defined in section 524.103 or its affiliate, a state bank
  1  9 chartered under the laws of any other state or its affiliate,
  1 10 a national banking association, a trust company, a federally
  1 11 chartered savings and loan association or savings bank, an
  1 12 out=of=state chartered savings and loan association or savings
  1 13 bank, a financial institution chartered by the federal home
  1 14 loan bank board, an association incorporated or authorized to
  1 15 do business under chapter 534, a state or federally chartered
  1 16 credit union, or a company or association organized or
  1 17 authorized to do business under chapter 515, 518, 518A, or
  1 18 520, or an officer, employee, or agent of such company or
  1 19 association, provided the communication does not deceptively
  1 20 conceal its origin or its purpose.
  1 21                           EXPLANATION
  1 22    This bill relates to debt collection disclosure
  1 23 requirements for state banks and state bank affiliates under
  1 24 the consumer credit code.  Under current law, persons acting
  1 25 as debt collectors must disclose in an initial written
  1 26 communication with a debtor that the debt collector is
  1 27 attempting to collect a debt and any information obtained will
  1 28 be used for that purpose.  Under current law, communications
  1 29 issued directly by a state bank acting as a debt collector are
  1 30 not required to include this disclosure.  The bill extends
  1 31 this exception for state banks to include affiliates of state
  1 32 banks.
  1 33 LSB 2144SC 81
  1 34 kk:nh/sh/8