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Senate File 2198 - IntroducedA Bill ForAn Act 1relating to notice provisions in connection with
2designated consumer lending provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.3205, subsection 1, Code 2020, is
2amended to read as follows:
31. Whether or not a change is authorized by prior agreement,
4a creditor may make a change in the terms of an open-end credit
5account applying to any balance incurred after the effective
6date of the change only if the creditor delivers or mails to
7the consumer a written disclosure of the change at least sixty
8days before the effective date of the change in accordance with
912 C.F.R.§1026.9.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to consumer lending notice provisions.
14The Iowa consumer credit code contained in Code chapter
15537 currently states creditors may only make changes to the
16terms of an open-end credit account, applying to any balance
17incurred after the effective date of the change, if the
18creditor provides to the consumer a written disclosure of the
19change at least 60 days prior to the effective date of the
20change. The bill replaces that 60-day notification requirement
21by incorporating by reference federal regulations governing
22the disclosure of changes to the terms of an open-end credit
23account.
-1-ja/rn
2designated consumer lending provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.3205, subsection 1, Code 2020, is
2amended to read as follows:
31. Whether or not a change is authorized by prior agreement,
4a creditor may make a change in the terms of an open-end credit
5account applying to any balance incurred after the effective
6date of the change only if the creditor delivers or mails to
7the consumer a written disclosure of the change at least sixty
8days before the effective date of the change in accordance with
912 C.F.R.§1026.9.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to consumer lending notice provisions.
14The Iowa consumer credit code contained in Code chapter
15537 currently states creditors may only make changes to the
16terms of an open-end credit account, applying to any balance
17incurred after the effective date of the change, if the
18creditor provides to the consumer a written disclosure of the
19change at least 60 days prior to the effective date of the
20change. The bill replaces that 60-day notification requirement
21by incorporating by reference federal regulations governing
22the disclosure of changes to the terms of an open-end credit
23account.
-1-ja/rn