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House File 512 - IntroducedA Bill ForAn Act 1providing for the deferral of unpaid installments and
2deferral charges for certain interest-bearing consumer
3credit transactions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.2503, subsection 1, Code 2017, is
2amended to read as follows:
31. a. Before or after default in payment of a scheduled
4installment of a precomputed consumer credit transaction, the
5parties to the transaction may agree in writing to a deferral
6of all or part of one or more unpaid installments and the
7creditor may make at the time of deferral and receive at that
8time or at any time thereafter a deferral charge which is
9not in excess of one and one-half percent per month for the
10period of time for which it is deferred, but not to exceed the
11rate of finance charge which was required to be disclosed in
12the transaction to the consumer pursuant to section 537.3201
13applied to each amount deferred for the period for which it
14is deferred. In computing a deferral charge for one or more
15months, any month may be counted as one-twelfth of a year and
16in computing a deferral charge for part of a month, a day shall
17be counted as one three hundred sixty-fifth of a year.
18b. With respect to an interest-bearing consumer credit
19transaction not pursuant to an open-end credit arrangement
20and other than a consumer lease or consumer rental purchase
21agreement, the parties to the transaction may agree in writing
22to a deferral of all or part of one or more unpaid installments
23in addition to any interest accrued pursuant to the terms of
24the consumer credit transaction. The creditor may make at
25the time of deferral and receive at that time or at any time
26thereafter a deferral charge which shall not exceed twenty
27dollars per deferred installment.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill authorizes the deferral of unpaid installments and
32deferral charges for certain interest-bearing consumer credit
33transactions.
34Under Code section 537.2503(1), the parties to a precomputed
35consumer credit transaction may agree in writing to a partial
-1-1or full deferral of any unpaid installments and the creditor
2may receive a deferral charge. The bill amends Code section
3537.2503(1) by providing for such a deferral with respect to
4interest-bearing consumer credit transactions not pursuant to
5open-end credit arrangements and other than consumer lease
6or consumer rental purchase agreements. The parties to this
7type of transaction may agree in writing to a partial or full
8deferral of any unpaid installments in addition to any interest
9accrued pursuant to the terms of the transaction. The creditor
10may receive a deferral charge not to exceed $20 per deferred
11installment.
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2deferral charges for certain interest-bearing consumer
3credit transactions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.2503, subsection 1, Code 2017, is
2amended to read as follows:
31. a. Before or after default in payment of a scheduled
4installment of a precomputed consumer credit transaction, the
5parties to the transaction may agree in writing to a deferral
6of all or part of one or more unpaid installments and the
7creditor may make at the time of deferral and receive at that
8time or at any time thereafter a deferral charge which is
9not in excess of one and one-half percent per month for the
10period of time for which it is deferred, but not to exceed the
11rate of finance charge which was required to be disclosed in
12the transaction to the consumer pursuant to section 537.3201
13applied to each amount deferred for the period for which it
14is deferred. In computing a deferral charge for one or more
15months, any month may be counted as one-twelfth of a year and
16in computing a deferral charge for part of a month, a day shall
17be counted as one three hundred sixty-fifth of a year.
18b. With respect to an interest-bearing consumer credit
19transaction not pursuant to an open-end credit arrangement
20and other than a consumer lease or consumer rental purchase
21agreement, the parties to the transaction may agree in writing
22to a deferral of all or part of one or more unpaid installments
23in addition to any interest accrued pursuant to the terms of
24the consumer credit transaction. The creditor may make at
25the time of deferral and receive at that time or at any time
26thereafter a deferral charge which shall not exceed twenty
27dollars per deferred installment.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill authorizes the deferral of unpaid installments and
32deferral charges for certain interest-bearing consumer credit
33transactions.
34Under Code section 537.2503(1), the parties to a precomputed
35consumer credit transaction may agree in writing to a partial
-1-1or full deferral of any unpaid installments and the creditor
2may receive a deferral charge. The bill amends Code section
3537.2503(1) by providing for such a deferral with respect to
4interest-bearing consumer credit transactions not pursuant to
5open-end credit arrangements and other than consumer lease
6or consumer rental purchase agreements. The parties to this
7type of transaction may agree in writing to a partial or full
8deferral of any unpaid installments in addition to any interest
9accrued pursuant to the terms of the transaction. The creditor
10may receive a deferral charge not to exceed $20 per deferred
11installment.
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