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 -1- LSB 5299XC (2) 88 ja/rn 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 -2- LSB 5299XC (2) 88 ja/rn 2/ 2