Senate
Study
Bill
3011
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
specified
fees
and
notice
provisions
in
1
connection
with
designated
consumer
lending
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5299XC
(2)
88
ja/rn
S.F.
_____
Section
1.
Section
535.10,
subsection
3,
paragraph
a,
Code
1
2020,
is
amended
to
read
as
follows:
2
a.
A
lender
may
collect
in
connection
with
establishing
3
or
renewing
a
home
equity
line
of
credit
the
costs
listed
in
4
section
535.8,
subsection
4
,
paragraph
“a”
or
“b”
,
charges
5
for
insurance
as
described
in
section
537.2501,
subsection
2
,
6
and
a
loan
processing
fee
as
agreed
between
the
borrower
and
7
the
lender,
and
annually
may
collect
an
account
maintenance
8
fee
of
not
more
than
fifteen
thirty
dollars.
Fees
collected
9
under
this
subsection
shall
be
disregarded
for
purposes
of
10
determining
the
maximum
charge
permitted
by
subsection
4
.
11
Sec.
2.
Section
537.3205,
subsection
1,
Code
2020,
is
12
amended
to
read
as
follows:
13
1.
Whether
or
not
a
change
is
authorized
by
prior
agreement,
14
a
creditor
may
make
a
change
in
the
terms
of
an
open-end
credit
15
account
applying
to
any
balance
incurred
after
the
effective
16
date
of
the
change
only
if
the
creditor
delivers
or
mails
to
17
the
consumer
a
written
disclosure
of
the
change
at
least
sixty
18
days
before
the
effective
date
of
the
change
in
accordance
with
19
12
C.F.R.
§1026.9
.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
makes
specified
changes
relating
to
consumer
24
lending
provisions.
25
The
bill
changes
the
maximum
annual
account
maintenance
fee
26
lenders
may
collect
in
connection
with
home
equity
lines
of
27
credit
from
$15
to
$30.
28
The
Iowa
consumer
credit
code
contained
in
Code
chapter
29
537
currently
states
creditors
may
only
make
changes
to
the
30
terms
of
an
open-end
credit
account,
applying
to
any
balance
31
incurred
after
the
effective
date
of
the
change,
if
the
32
creditor
provides
to
the
consumer
a
written
disclosure
of
the
33
change
at
least
60
days
prior
to
the
effective
date
of
the
34
change.
The
bill
replaces
that
60-day
notification
requirement
35
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1/
2
S.F.
_____
by
incorporating
by
reference
federal
regulations
governing
1
the
disclosure
of
changes
to
the
terms
of
an
open-end
credit
2
account.
3
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2/
2