SF 2125 (LSB 5964XS (1) 87)

SENATE FILE 2125

BY  CHELGREN

A BILL FOR

An Act relating to delayed deposit services by limiting the annual percentage rate for fees, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 533D.9, subsection 2, paragraph b, Code 2018, is amended to read as follows:
   b.  The annual percentage rate as computed pursuant to the federal Truth in Lending Act.  The annual percentage rate shall not exceed thirty-six percent.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current law allows a person licensed to operate a delayed deposit services business to charge certain fees, charges, and penalties in connection with a delayed deposit services transaction. This bill limits the annual percentage rate applicable to a delayed deposit services transaction to 36 percent, as computed pursuant to the federal Truth in Lending Act. A violation of the bill may result in an administrative fine of not more than $5,000 for each violation and the cost of investigation.