HF 727 (LSB 1853YH (3) 91)

HOUSE FILE 727

BY  COOLING, WILBURN, JAMES, LEVIN, B. MEYER, KRESSIG, BAGNIEWSKI, MADISON, CROKEN, R. JOHNSON, AMOS JR., SRINIVAS, EHLERT, OLSON, SCHOLTEN, WESSEL-KROESCHELL, and NIELSEN

A BILL FOR

An Act relating to the maximum finance charge on a consumer credit sale.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 537.2201, subsection 2, Code 2025, is amended to read as follows:
   2.  The finance charge, calculated according to the actuarial method, may not exceed twenty-one ten percent per year on the unpaid balances of the amount financed.
    Sec. 2.  Section 537.2202, subsection 2, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   For each billing cycle, a charge may be made which is a percentage of an amount not exceeding the greatest of the following, but in no case shall exceed ten percent per year on the unpaid balance of the amount financed:
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the maximum finance charge for consumer credit sales. Under the bill, for consumer credit sales both pursuant to open-end credit and not pursuant to open-end credit, a finance charge may not exceed 10 percent per year on the unpaid balance of the amount financed.