H.F. _____ Section 1. Section 533D.9, subsection 2, paragraph d, Code 1 2015, is amended to read as follows: 2 d. Any penalty, not to exceed fifteen dollars, which the 3 licensee will charge if the check is not negotiable on the 4 date agreed upon. A penalty to be charged pursuant to this 5 section shall only be collected by the licensee once on a check 6 no matter how long the check remains unpaid. A penalty to be 7 charged pursuant to this section is a licensee’s exclusive 8 remedy , except a penalty charged pursuant to section 533D.9A, 9 subsection 7, and if a licensee charges a penalty pursuant to 10 this section no other penalties under this chapter or any other 11 provision apply. 12 Sec. 2. Section 533D.9, subsection 2, Code 2015, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . e. That the licensee must provide the 15 maker of the check the option to enter into a repayment plan 16 agreement pursuant to section 533D.9A before the licensee 17 can initiate debt collection, civil court proceedings, or 18 arbitration to collect on an unpaid check. 19 Sec. 3. NEW SECTION . 533D.9A Repayment plans —— 20 requirements —— agreement —— penalty. 21 1. If the check is not negotiable on the date agreed upon, 22 the licensee shall provide the maker of the check with the 23 option to enter into a repayment plan agreement pursuant to 24 this section prior to initiating debt collection, as defined 25 by section 537.7102, civil court proceedings, or arbitration 26 to collect on the unpaid check. 27 2. a. A licensee shall enter into a repayment plan 28 agreement with the maker of the unpaid check at the maker’s 29 request. The maker may request a repayment plan through 30 written notice or orally. 31 b. A licensee shall not assess any other fee, interest 32 charge, or other charge on the maker as a result of entering 33 into a repayment plan agreement concerning the unpaid check 34 obligation. 35 -1- LSB 1668YC (1) 86 ad/sc 1/ 5

H.F. _____ 3. a. The maker of the check shall pay the total unpaid 1 check obligation to be charged in equal installments over a 2 period of a minimum of ninety days. A repayment plan agreement 3 shall contain a schedule for the payment of the total unpaid 4 check obligation. 5 b. The repayment plan agreement shall be in writing and 6 signed by both the maker and the licensee. 7 c. The maker may make early payments on a repayment plan or 8 may pay a larger amount in an installment at any time without 9 penalty, fee, or charge. 10 4. Upon entering into a repayment plan agreement, the 11 licensee shall return any postdated check that the maker 12 has given to the licensee for the delayed deposit service 13 transaction. 14 5. During the duration of the repayment plan agreement, the 15 licensee shall not transfer or sell the obligation owing on the 16 unpaid check. 17 6. During the duration of the repayment plan agreement, the 18 obligation the maker owes on the unpaid check is not delinquent 19 and the licensee shall not charge a penalty pursuant to section 20 533D.9, subsection 2. 21 7. a. If the maker fails to make a payment scheduled 22 pursuant to the repayment plan agreement, the licensee may 23 charge a penalty of twenty-five dollars. A licensee shall 24 only collect this penalty once even if the payment remains 25 unpaid or the maker fails to make another scheduled payment. 26 If a licensee charges a penalty pursuant to this subsection, 27 no other penalties under this chapter or any other provision 28 apply, including a penalty imposed pursuant to section 533D.9, 29 subsection 2. 30 b. Upon the maker’s failure to make a scheduled payment, 31 the licensee may initiate debt collection as defined in section 32 537.7102, civil court proceedings, or arbitration to collect on 33 the unpaid check. 34 Sec. 4. Section 533D.10, subsection 1, paragraph f, Code 35 -2- LSB 1668YC (1) 86 ad/sc 2/ 5

H.F. _____ 2015, is amended to read as follows: 1 f. Receive any other charges or fees in addition to the 2 fees listed in section 533D.9, subsections 1 and 2 , or section 3 533D.9A, subsection 7 . 4 Sec. 5. Section 533D.10, subsection 1, Code 2015, is amended 5 by adding the following new paragraphs: 6 NEW PARAGRAPH . g. Hold from any one maker a check if the 7 licensee currently has a check from the maker that is not 8 negotiable on the date agreed upon or if the licensee has had a 9 check from the maker that was not negotiable on the date agreed 10 upon in the previous year. 11 NEW PARAGRAPH . h. Hold from any one maker a check if the 12 maker is currently paying an unpaid check obligation pursuant 13 to a repayment plan agreement entered into under section 14 533D.9A. 15 NEW PARAGRAPH . i. Hold from any one maker a check within 16 one hundred eighty days following the date the maker paid 17 or otherwise satisfied in full an obligation pursuant to a 18 repayment plan agreement entered into pursuant to section 19 533D.9A. 20 NEW PARAGRAPH . j. Engage in fraud, deceit, 21 misrepresentation, or other acts with the intent to evade the 22 requirements of this chapter. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to delayed deposit services by requiring 27 the option of a repayment plan and prohibiting certain acts by 28 licensees. 29 The bill states that if the check is not negotiable on the 30 date agreed upon, the licensee shall offer the maker of the 31 check the option to enter into a repayment plan agreement prior 32 to initiating debt collection actions, civil court proceedings, 33 or arbitration to collect on the unpaid check. The bill 34 provides that if the maker of the check requests a repayment 35 -3- LSB 1668YC (1) 86 ad/sc 3/ 5

H.F. _____ plan, either orally or in writing, the licensee must enter into 1 a repayment plan agreement with the maker of the check and may 2 not assess a fee, interest charge, or other charge to enter 3 into that repayment plan agreement. 4 Pursuant to the bill, a repayment plan agreement shall 5 include the schedule for payment of the total unpaid check 6 obligation. Under this schedule, the maker of the check shall 7 pay the total unpaid check obligation in equal installments 8 over a period of at least 90 days. The repayment plan 9 agreement must be in writing and signed by the licensee and the 10 maker of the check. The maker may make early payments or may 11 pay in larger amounts in an installment without penalty, fee, 12 or charge. 13 The bill requires the licensee to return the postdated check 14 at issue in the repayment plan agreement upon entering into a 15 repayment plan agreement. 16 The bill prohibits the licensee from transferring or selling 17 the obligation the maker owes on the unpaid check during the 18 duration of the repayment plan agreement. The bill states that 19 during the time the repayment plan agreement is in effect, the 20 obligation owed on the unpaid check is not delinquent or past 21 due and the licensee shall not charge the $15 penalty under 22 Code section 533D.9, subsection 2. 23 The bill states that if the maker fails to make a scheduled 24 payment under the repayment plan agreement, the licensee may 25 charge a one-time penalty of $25. If the licensee charges the 26 $25 penalty, the licensee may not charge any other penalty. 27 The bill makes conforming changes. The bill also allows 28 the licensee to proceed with debt collection, civil court 29 proceedings, or arbitration to collect on the unpaid debt if 30 the maker fails to make a scheduled payment. 31 The bill also adds provisions to the prohibited acts Code 32 section. The bill prohibits licensees from holding a check 33 from any one maker if the licensee has a check from that maker 34 that is not negotiable on the date agreed upon or has had a 35 -4- LSB 1668YC (1) 86 ad/sc 4/ 5

H.F. _____ check from that maker that was not negotiable on the date 1 agreed upon in the previous year. The bill prohibits licensees 2 from holding a check for any maker if the maker is currently 3 paying an unpaid check obligation pursuant to a repayment 4 plan agreement entered into pursuant to the bill. The bill 5 prohibits licensees from holding a check for a maker within 180 6 days following the date the maker paid or otherwise satisfied a 7 debt under a repayment plan agreement entered into pursuant to 8 the bill. The bill prohibits licensees from engaging in fraud, 9 deceit, misrepresentation, or other acts with the intent to 10 evade the requirements of Code chapter 533D relating to delayed 11 deposit services. 12 A violation of the bill could result in an administrative 13 fine of not more than $5,000 for each violation and the cost of 14 investigation. 15 -5- LSB 1668YC (1) 86 ad/sc 5/ 5