House File 2326 - Reprinted HOUSE FILE 2326 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 603) (As Amended and Passed by the House April 1, 2026 ) A BILL FOR An Act relating to debt management programs, services, fees, 1 and licensee requirements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 2326 (2) 91 nls/ko/md

H.F. 2326 Section 1. Section 533A.8, subsection 5, paragraph a, Code 1 2026, is amended to read as follows: 2 a. Maintain a separate bank trust account or dedicated 3 account in which all payments received from debtors for the 4 benefit of creditors shall be deposited and in which all 5 payments shall remain until a remittance is made to either the 6 debtor or the creditor. 7 Sec. 2. Section 533A.8, subsection 5, paragraph d, Code 8 2026, is amended by striking the paragraph. 9 Sec. 3. Section 533A.8, subsection 6, Code 2026, is amended 10 to read as follows: 11 6. If the debt management program is not based on a model 12 which requires the licensee or any licensee to receive money or 13 evidences thereof from the debtor to distribute to the debtor’s 14 creditors , both of the following shall apply: 15 a. The the debtor shall maintain full control of and access 16 to any moneys set aside for payment to creditors. 17 b. The licensee may not receive consideration from any third 18 party in connection with services rendered to a debtor. 19 Sec. 4. Section 533A.8, Code 2026, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 10A. If a debtor who has contracted with 22 a licensee to settle a debt has executed a debt settlement 23 agreement with a creditor to settle such debt and has made at 24 least one payment pursuant to that agreement, and the debtor 25 subsequently fails to complete the payment terms required under 26 that debt settlement agreement, the licensee shall attempt to 27 renegotiate, resolve, reduce, or otherwise alter the terms of 28 the debt with the creditor and shall not request or receive 29 an additional fee from the debtor for any additional debt 30 management service provided by the licensee for that debt. 31 This subsection does not prohibit a licensee from requesting 32 or receiving payment of any outstanding balance of the fee 33 required by the contract between the licensee and debtor for 34 that debt. 35 -1- HF 2326 (2) 91 nls/ko/md 1/ 3

H.F. 2326 Sec. 5. Section 533A.9, subsection 4, Code 2026, is amended 1 by striking the subsection and inserting in lieu thereof the 2 following: 3 4. If a debt management program is not based on a model that 4 requires the licensee or another licensee to receive money or 5 evidences thereof from the debtor to distribute to the debtor’s 6 creditors, a licensee may not request or receive payment of 7 any fee or consideration for debt management services provided 8 under a debt management program unless all of the following are 9 true: 10 a. The licensee has renegotiated, resolved, reduced, or 11 otherwise altered the terms of at least one debt pursuant to a 12 resolution agreement or other contractual agreement executed 13 by the debtor and the creditor. 14 b. The debtor has made at least one payment pursuant to the 15 resolution agreement or other contractual agreement entered 16 into under paragraph “a” . 17 c. To the extent that debts enrolled in the debt management 18 program are renegotiated, resolved, reduced, or otherwise 19 altered individually, the fee or consideration for the debt 20 management service bears the same proportional relationship to 21 the total fee or consideration for renegotiating, resolving, 22 reducing, or otherwise altering the terms of the entire debt 23 balance as the individual debt amount bears to the entire debt 24 amount, not to exceed thirty percent of the total amount of 25 debt enrolled by the debtor at the time of enrollment in the 26 debt management program. The individual debt amount and the 27 entire debt amount are those owed at the time the debt was 28 enrolled in the debt management program. The percent charged 29 is the same for each individual debt enrolled in the debt 30 management program. 31 Sec. 6. Section 533A.9, subsection 5, Code 2026, is amended 32 by striking the subsection and inserting in lieu thereof the 33 following: 34 5. a. Notwithstanding any provision of this section to 35 -2- HF 2326 (2) 91 nls/ko/md 2/ 3

H.F. 2326 the contrary, the total aggregate fee or consideration charged 1 by a licensee for all debt management services provided by the 2 licensee to a debtor shall not exceed thirty percent of the 3 total amount of debt enrolled by the debtor at the time of 4 enrollment in the debt management program. 5 b. A licensee may assess and collect the fee for debt 6 management services on a per-debt basis as a debt is 7 renegotiated, settled, reduced, or otherwise altered in a 8 manner consistent with this section and applicable federal law. 9 Sec. 7. Section 533A.9, Code 2026, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 6. If a debt settlement agreement between a 12 debtor and a creditor to settle a debt provides for the debtor 13 to make more than one payment to the creditor, the licensee 14 shall request or receive payment from the debtor of any fee for 15 debt management services provided with respect to that debt 16 incrementally over not less than one quarter of the length of 17 the debtor’s period of repayment to such creditor. 18 Sec. 8. Section 538A.2, subsection 2, Code 2026, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . i. A person licensed to engage in the 21 business of debt management under section 533A.2, when acting 22 within the course and scope of that license. 23 -3- HF 2326 (2) 91 nls/ko/md 3/ 3