Senate
File
106
-
Introduced
SENATE
FILE
106
BY
BOLKCOM
,
CELSI
,
BOULTON
,
WAHLS
,
J.
SMITH
,
MATHIS
,
RAGAN
,
PETERSEN
,
JOCHUM
,
and
DOTZLER
A
BILL
FOR
An
Act
relating
to
delayed
deposit
services
by
limiting
the
1
annual
percentage
rate
for
fees
and
requiring
a
delayed
2
deposit
repayment
option
in
certain
circumstances
and
making
3
penalties
applicable.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
533D.9,
subsection
2,
paragraph
b,
Code
1
2019,
is
amended
to
read
as
follows:
2
b.
The
annual
percentage
rate
as
computed
pursuant
to
the
3
federal
Truth
in
Lending
Act.
The
annual
percentage
rate
shall
4
not
exceed
thirty-six
percent.
5
Sec.
2.
Section
533D.9,
subsection
2,
Code
2019,
is
amended
6
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
e.
That
a
maker
obtaining
more
than
four
8
delayed
deposit
service
loans
from
one
licensee
in
a
two-month
9
period
shall
have
the
option
to
enter
into
an
extended
10
repayment
plan
agreement
with
the
licensee
pursuant
to
section
11
533D.9A
upon
the
maker’s
request
and
prior
to
the
date
the
last
12
check
accepted
by
the
licensee
is
to
be
negotiable.
13
Sec.
3.
NEW
SECTION
.
533D.9A
Extended
repayment
plan.
14
1.
Any
maker
obtaining
more
than
four
delayed
deposit
15
service
loans
from
one
licensee
in
a
two-month
period
shall
16
enter
into
an
extended
repayment
plan
agreement
with
the
17
licensee
if
the
maker
requests
to
enter
into
such
agreement
18
prior
to
the
date
upon
which
the
last
check
accepted
by
the
19
licensee
is
to
be
negotiable.
Except
as
provided
in
this
20
section,
the
licensee
shall
not
initiate
debt
collection,
21
as
defined
by
section
537.7102,
civil
court
proceedings,
or
22
arbitration
to
collect
on
any
unpaid
checks
during
the
term
of
23
the
extended
repayment
plan
agreement.
24
2.
A
licensee
is
required
to
enter
into
only
one
extended
25
repayment
plan
agreement
with
a
maker
in
a
twelve-month
period,
26
measured
from
the
commencement
date
of
the
first
extended
27
repayment
plan
agreement
until
the
commencement
date
of
the
28
second
extended
repayment
plan
agreement.
29
3.
A
licensee
shall
not
assess
any
other
fee,
interest
30
charge,
or
other
fee
or
charge
on
the
maker
as
a
result
of
31
entering
into
an
extended
repayment
plan
agreement
concerning
32
any
unpaid
check
obligations.
33
4.
a.
The
maker
shall
be
allowed
to
pay
the
total
unpaid
34
check
obligations
to
be
charged
in
at
least
four
substantially
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equal
installments
due
on
dates
or
soon
after
dates
when
the
1
maker
will
receive
regular
income,
or
on
dates
as
mutually
2
agreed
upon
by
the
maker
and
the
licensee.
The
extended
3
repayment
plan
agreement
shall
contain
a
schedule
for
the
4
payment
of
the
total
unpaid
check
obligations.
5
b.
The
extended
repayment
plan
agreement
shall
be
in
writing
6
and
signed
by
both
the
maker
and
the
licensee.
7
5.
Upon
entering
into
an
extended
repayment
plan
agreement,
8
the
licensee
shall
return
any
postdated
checks
that
the
maker
9
has
given
to
the
licensee
for
the
original
delayed
deposit
10
services
transactions
and
shall
do
one
of
the
following:
11
a.
The
licensee
shall
require
the
maker
at
the
time
of
12
entering
into
an
extended
repayment
plan
agreement
to
make
13
a
new
check
for
the
balance
on
any
unpaid
checks
and
upon
14
each
payment
by
the
maker
under
the
extended
repayment
plan
15
agreement,
the
licensee
shall
require
a
new
check
for
the
16
remaining
balance
and
return
any
previous
check
to
the
maker.
17
b.
The
licensee
shall
require
the
maker
at
the
time
of
18
entering
into
the
extended
repayment
plan
agreement
to
provide
19
multiple
checks,
one
for
each
of
the
scheduled
payments
under
20
the
extended
repayment
plan
agreement.
21
6.
During
the
duration
of
the
extended
repayment
plan
22
agreement,
the
obligations
the
maker
owes
on
any
unpaid
checks
23
are
not
delinquent
and
the
licensee
shall
not
charge
a
penalty
24
pursuant
to
section
533D.9,
subsection
2.
25
7.
Upon
the
maker’s
failure
to
make
a
scheduled
payment
26
pursuant
to
the
extended
repayment
plan
agreement,
the
licensee
27
may
charge
a
penalty
pursuant
to
section
533D.9,
subsection
28
2,
and
may
initiate
debt
collection
as
defined
in
section
29
537.7102,
civil
court
proceedings,
or
arbitration
to
collect
on
30
any
unpaid
checks.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
modifies
provisions
applicable
to
delayed
deposit
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services.
1
The
bill
limits
the
annual
percentage
rate
applicable
to
a
2
delayed
deposit
services
transaction
to
36
percent,
as
computed
3
pursuant
to
the
federal
Truth
in
Lending
Act.
4
The
bill
requires
a
licensee
holding
multiple
checks
from
5
one
maker
at
any
one
time
to
enter
into
an
extended
repayment
6
plan
agreement
if
the
maker
of
the
multiple
checks
requests
7
to
enter
into
such
agreement
prior
to
the
date
upon
which
the
8
checks
are
to
be
negotiable.
The
licensee
may
not
initiate
9
debt
collection,
civil
court
proceedings,
or
arbitration
to
10
collect
on
the
unpaid
checks
during
the
term
of
the
extended
11
repayment
plan
agreement.
A
licensee
need
only
enter
into
one
12
extended
repayment
plan
agreement
with
a
maker
of
multiple
13
checks
in
a
12-month
period.
A
licensee
cannot
charge
a
fee,
14
interest
charge,
or
other
charge
as
a
result
of
entering
into
15
an
extended
repayment
plan
agreement.
During
the
duration
16
of
the
agreement,
the
obligations
that
the
maker
owes
on
the
17
unpaid
checks
are
not
delinquent
and
the
licensee
cannot
charge
18
penalties
for
a
delinquent
obligation.
19
The
bill
allows
a
maker
obtaining
more
than
four
delayed
20
deposit
service
loans
from
one
licensee
in
a
two-month
period
21
to
enter
into
an
extended
repayment
plan
agreement
with
the
22
licensee
if
the
maker
requests
to
enter
into
such
an
agreement
23
prior
to
the
date
upon
which
the
last
check
accepted
by
the
24
licensee
is
to
be
negotiable.
The
licensee
may
not
initiate
25
debt
collection,
civil
court
proceedings,
or
arbitration
to
26
collect
on
any
unpaid
checks
during
the
term
of
the
extended
27
repayment
plan
agreement.
A
licensee
need
only
enter
into
one
28
extended
repayment
plan
agreement
with
a
maker
in
a
12-month
29
period.
A
licensee
cannot
charge
a
fee,
interest
charge,
or
30
other
charge
as
a
result
of
entering
into
an
extended
repayment
31
plan
agreement.
During
the
duration
of
the
agreement,
the
32
obligations
that
the
maker
owes
on
any
unpaid
checks
are
not
33
delinquent
and
the
licensee
cannot
charge
penalties
for
a
34
delinquent
obligation.
35
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106
The
bill
requires
the
extended
repayment
plan
agreement
1
to
be
in
writing,
signed
by
the
maker
and
the
licensee,
and
2
contain
the
schedule
for
payment
of
the
total
unpaid
check
3
obligations.
The
schedule
must
allow
the
maker
to
pay
the
4
checks
in
at
least
four
substantially
equal
installments.
5
The
bill
requires
the
licensee
to
return
any
postdated
6
checks
that
the
maker
has
given
to
the
licensee
for
the
7
original
transactions.
The
licensee
may
then
either
require
8
the
maker
to
provide
a
new
check
for
the
balance
on
the
unpaid
9
checks
or
provide
multiple
checks
for
each
scheduled
payment
10
under
the
agreement.
11
The
bill
states
that
upon
the
maker’s
failure
to
make
a
12
scheduled
payment,
the
licensee
may
charge
a
penalty
pursuant
13
to
Code
section
533D.9(2),
and
may
initiate
debt
collection,
14
civil
court
proceedings,
or
arbitration
to
collect
on
the
15
unpaid
checks.
16
A
violation
of
the
bill
may
result
in
an
administrative
fine
17
of
not
more
than
$5,000
for
each
violation
and
the
cost
of
18
investigation.
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