Text: SSB1268            Text: SSB1270


Senate Study Bill 1269

SENATE FILE BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the regulation of delayed deposit service 2 businesses. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2326XC 83 5 rn/nh/24 PAG LIN 1 1 Section 1. Section 533D.9, subsection 1, Code 2009, is 1 2 amended to read as follows: 1 3 1. A licensee shall not charge a fee in excess of fifteen 1 4 seven dollars and fifty cents on the first one hundred dollars 1 5 on the face amount of a check or more than ten five dollars on 1 6 subsequent one hundred dollar increments on the face amount of 1 7 the check for services provided by the licensee, or pro rata 1 8 for any portion of one hundred dollars face value. 1 9 Sec. 2. Section 533D.9, subsection 2, Code 2009, is 1 10 amended by adding the following new paragraph: 1 11 NEW PARAGRAPH. e. That the licensee cannot initiate 1 12 either civil court proceedings or arbitration to collect an 1 13 unpaid check unless the licensee has provided the maker of the 1 14 check the opportunity to repay the obligation, without any 1 15 additional charges other than the fee and penalty as provided 1 16 in this section, in biweekly payments of not more than ten 1 17 percent of the face of the check until the debt is paid in 1 18 full. Additionally, that during this repayment period the 1 19 licensee may not transfer or sell the debt owing on the unpaid 1 20 check and may not report on the account or borrower to any 1 21 credit reporting agency, that the maker's failure to make any 1 22 biweekly payment shall place the loan in default, and that the 1 23 licensee may, after proper notice, exercise rights against the 1 24 borrower for collection of the unpaid balance. 1 25 Sec. 3. Section 533D.10, subsection 1, Code 2009, is 1 26 amended by adding the following new paragraph: 1 27 NEW PARAGRAPH. g. Initiate either civil court proceedings 1 28 or arbitration to collect an unpaid check except as provided 1 29 in section 533D.9 in the event of loan default after failure 1 30 to make biweekly payments, or transfer or sell debt or report 1 31 to a credit reporting agency during the biweekly payment 1 32 period as specified in section 533D.9. 1 33 EXPLANATION 1 34 This bill relates to specified aspects of the regulation of 1 35 delayed deposit services businesses. 2 1 The bill lowers the amount of fees which may be charged by 2 2 a delayed deposit service business licensee from the current 2 3 level of $15 on the first $100 loaned and $10 on subsequent 2 4 $100 increments loaned to $7.50 and $5, respectively. 2 5 The bill also provides that a licensee must disclose to the 2 6 maker of a check that the licensee cannot initiate civil court 2 7 proceedings or arbitration to collect an unpaid check unless 2 8 they have provided the maker the opportunity to repay the 2 9 obligation in biweekly payments of not more than 10 percent of 2 10 the face of the check until the debt is paid in full. The 2 11 bill adds that during the repayment period the licensee cannot 2 12 transfer or sell the debt nor report to any credit reporting 2 13 agency, and that the maker's failure to make the biweekly 2 14 payment places the loan in default at which time, after 2 15 notice, the licensee may proceed with collection efforts. The 2 16 bill additionally makes the failure to conform with these 2 17 provisions a prohibited act on the part of the licensee, which 2 18 could subject the licensee to disciplinary action as specified 2 19 in Code section 533D.12. 2 20 LSB 2326XC 83 2 21 rn/nh/24
Text: SSB1268            Text: SSB1270