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House Study Bill 514 - IntroducedA Bill ForAn Act 1relating to specified fees and notice provisions in
2connection with designated consumer lending provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 535.10, subsection 3, paragraph a, Code
22020, is amended to read as follows:
3a. A lender may collect in connection with establishing
4or renewing a home equity line of credit the costs listed in
5section 535.8, subsection 4, paragraph “a” or “b”, charges
6for insurance as described in section 537.2501, subsection 2,
7and a loan processing fee as agreed between the borrower and
8the lender, and annually may collect an account maintenance
9fee of not more than fifteen thirty dollars. Fees collected
10under this subsection shall be disregarded for purposes of
11determining the maximum charge permitted by subsection 4.
12 Sec. 2. Section 537.3205, subsection 1, Code 2020, is
13amended to read as follows:
141. Whether or not a change is authorized by prior agreement,
15a creditor may make a change in the terms of an open-end credit
16account applying to any balance incurred after the effective
17date of the change only if the creditor delivers or mails to
18the consumer a written disclosure of the change at least sixty
19days before the effective date of the change in accordance with
2012 C.F.R.§1026.9.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill makes specified changes relating to consumer
25lending provisions.
26The bill changes the maximum annual account maintenance fee
27lenders may collect in connection with home equity lines of
28credit from $15 to $30.
29The Iowa consumer credit code contained in Code chapter
30537 currently states creditors may only make changes to the
31terms of an open-end credit account, applying to any balance
32incurred after the effective date of the change, if the
33creditor provides to the consumer a written disclosure of the
34change at least 60 days prior to the effective date of the
35change. The bill replaces that 60-day notification requirement
-1-1by incorporating by reference federal regulations governing
2the disclosure of changes to the terms of an open-end credit
3account.
-2-ja/rn
2connection with designated consumer lending provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 535.10, subsection 3, paragraph a, Code
22020, is amended to read as follows:
3a. A lender may collect in connection with establishing
4or renewing a home equity line of credit the costs listed in
5section 535.8, subsection 4, paragraph “a” or “b”, charges
6for insurance as described in section 537.2501, subsection 2,
7and a loan processing fee as agreed between the borrower and
8the lender, and annually may collect an account maintenance
9fee of not more than fifteen thirty dollars. Fees collected
10under this subsection shall be disregarded for purposes of
11determining the maximum charge permitted by subsection 4.
12 Sec. 2. Section 537.3205, subsection 1, Code 2020, is
13amended to read as follows:
141. Whether or not a change is authorized by prior agreement,
15a creditor may make a change in the terms of an open-end credit
16account applying to any balance incurred after the effective
17date of the change only if the creditor delivers or mails to
18the consumer a written disclosure of the change at least sixty
19days before the effective date of the change in accordance with
2012 C.F.R.§1026.9.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill makes specified changes relating to consumer
25lending provisions.
26The bill changes the maximum annual account maintenance fee
27lenders may collect in connection with home equity lines of
28credit from $15 to $30.
29The Iowa consumer credit code contained in Code chapter
30537 currently states creditors may only make changes to the
31terms of an open-end credit account, applying to any balance
32incurred after the effective date of the change, if the
33creditor provides to the consumer a written disclosure of the
34change at least 60 days prior to the effective date of the
35change. The bill replaces that 60-day notification requirement
-1-1by incorporating by reference federal regulations governing
2the disclosure of changes to the terms of an open-end credit
3account.
-2-ja/rn