Senate File 2198 - Introduced SENATE FILE 2198 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3011) A BILL FOR An Act relating to notice provisions in connection with 1 designated consumer lending provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5299SV (3) 88 ja/rn

S.F. 2198 Section 1. Section 537.3205, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. Whether or not a change is authorized by prior agreement, 3 a creditor may make a change in the terms of an open-end credit 4 account applying to any balance incurred after the effective 5 date of the change only if the creditor delivers or mails to 6 the consumer a written disclosure of the change at least sixty 7 days before the effective date of the change in accordance with 8 12 C.F.R. §1026.9 . 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to consumer lending notice provisions. 13 The Iowa consumer credit code contained in Code chapter 14 537 currently states creditors may only make changes to the 15 terms of an open-end credit account, applying to any balance 16 incurred after the effective date of the change, if the 17 creditor provides to the consumer a written disclosure of the 18 change at least 60 days prior to the effective date of the 19 change. The bill replaces that 60-day notification requirement 20 by incorporating by reference federal regulations governing 21 the disclosure of changes to the terms of an open-end credit 22 account. 23 -1- LSB 5299SV (3) 88 ja/rn 1/ 1