Text: HF345            Text: HF347
Complete Bill History


House File 346

HOUSE FILE BY BERRY (COMPANION TO 2157SS BY BOLKCOM) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to delayed deposit services including fees, 2 notices, transaction amounts, and reporting requirements. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2157HH 81 5 kk/gg/14 PAG LIN 1 1 Section 1. Section 533D.9, Code 2005, is amended to read 1 2 as follows: 1 3 533D.9 FEE RESTRICTION == REQUIRED DISCLOSURE. 1 4 1. a. A licensee shall not charge a transaction fee in 1 5 excess of fifteen five dollars on the first per one hundred 1 6 dollars on the face amount of a check or more than ten dollars 1 7 on subsequent one hundred dollar increments on the face amount 1 8 of the check of the amount financed for services provided by 1 9 the licensee, or pro rata for any portion of one hundred 1 10 dollars face value. 1 11 b. If the check is not negotiable on the date agreed upon, 1 12 a licensee may charge a default fee, not to exceed fifteen 1 13 dollars. Only one such fee may be collected with respect to a 1 14 check even if the check has been redeposited and returned more 1 15 than once, regardless of how long the check remains unpaid. A 1 16 fee charged pursuant to this subsection is a licensee's 1 17 exclusive remedy and charge for late payment or nonpayment. 1 18 2. A licensee shall give to the maker of the check, at the 1 19 time any delayed deposit service transaction is made, or if 1 20 there are two or more makers, to one of them, notice written 1 21 in clear, understandable language disclosing all of the 1 22 following: 1 23 a. The transaction fee to be charged for the transaction. 1 24 b. The annual percentage rate on the first hundred dollars 1 25 on the face amount of the check which the fee represents, and 1 26 the annual percentage rate on subsequent one hundred dollar 1 27 increments which the fee represents, if different transaction. 1 28 c. The date on which the check will be deposited or 1 29 presented for negotiation. 1 30 d. Any penalty The default fee, not to exceed fifteen 1 31 dollars, which that the licensee will charge if the check is 1 32 not negotiable on the date agreed upon. A penalty The notice 1 33 shall state that the default fee to be charged pursuant to 1 34 this section shall only be collected by the licensee once on a 1 35 check no matter regardless of how long the check remains 2 1 unpaid. A penalty; and that a default fee to be charged 2 2 pursuant to this section is a licensee's exclusive remedy and 2 3 if a licensee charges a penalty default fee pursuant to this 2 4 section no other penalties under this chapter or any other 2 5 provision apply. 2 6 3. In addition to the notice required by subsection 2, 2 7 every licensee shall conspicuously display a schedule of all 2 8 fees, charges, and penalties for all services provided by the 2 9 licensee authorized by this section. The notice shall be 2 10 posted at the office and every branch office of the licensee. 2 11 The licensee shall provide a written schedule of the fees, 2 12 charges, interest rates, and penalties upon request. 2 13 4. The licensee shall make all notices and disclosures 2 14 required under this section available in the languages spoken 2 15 by consumers who frequent that location. 2 16 Sec. 2. Section 533D.10, subsection 1, Code 2005, is 2 17 amended to read as follows: 2 18 1. A licensee shall not do any of the following: 2 19 a. Hold from any one maker more than two checks one check 2 20 at any one time. 2 21 b. Hold from any one maker a check or checks in an 2 22 aggregate face amount of more than five three hundred dollars 2 23 at any one time. 2 24 c. Hold or agree to hold a check for more than thirty=one 2 25 days. 2 26 d. Require the maker to receive payment by a method which 2 27 that causes the maker to pay additional or further fees and 2 28 charges to the licensee or another person, or otherwise charge 2 29 to cash a check representing the proceeds of the transaction. 2 30 e. Repay, refinance, or otherwise consolidate a postdated 2 31 check transaction with the proceeds of another postdated check 2 32 transaction made by the same licensee. Upon payment of the 2 33 maker's check by the drawee bank, the return of a check to a 2 34 maker who redeems it for consideration, or any other method of 2 35 termination of the delayed deposit transaction, the licensee 3 1 shall not enter into another delayed deposit transaction with 3 2 the same maker for at least two days thereafter provided, 3 3 however, that a licensee may extend the delay of the deposit 3 4 of the check without charge. 3 5 f. Receive any other charges or fees in addition to the 3 6 fees listed in section 533D.9, subsections 1 and 2. 3 7 Sec. 3. NEW SECTION. 533D.17 REPORTING. 3 8 1. The superintendent shall annually collect, and 3 9 licensees shall provide, information regarding at least all of 3 10 the following: 3 11 a. The total number of delayed deposit transactions made 3 12 at each location. 3 13 b. The total amount of money subject to delayed deposit 3 14 transactions at each location. 3 15 c. The total amount of bad debt incurred at each location. 3 16 d. Affiliate relationships, if any, of each licensee with 3 17 any financial institutions. 3 18 e. The age, ethnicity, and annual income of each consumer 3 19 of the licensee's delayed deposit services business. 3 20 2. The superintendent may adopt rules pursuant to chapter 3 21 17A related to these reporting requirements. 3 22 EXPLANATION 3 23 This bill makes amendments to Code chapter 533D, delayed 3 24 deposit services, more commonly known as payday loans. 3 25 The bill amends Code section 533.9 to provide that a 3 26 licensee may charge a transaction fee of $5 per $100 of the 3 27 amount financed, rather than the current fee maximum of $15 on 3 28 the first $100 financed, and $10 for subsequent $100 3 29 increments. 3 30 The bill also amends Code section 533.9 to require 3 31 licensees to make written information regarding charges, fees, 3 32 penalties, and interest rates available upon request, and to 3 33 provide that notices and disclosures be provided in languages 3 34 spoken by the consumers who frequent that location. 3 35 The bill amends Code section 533.10 to provide that the 4 1 licensee shall not enter into more than one transaction with a 4 2 maker at one time, and that the licensee must wait two days 4 3 after termination of a transaction through cashing the maker's 4 4 check before entering into another delayed deposit transaction 4 5 with the same maker. The bill also changes the maximum amount 4 6 of the transaction to $300, rather than $500. 4 7 The bill creates new Code section 533D.17, which requires 4 8 licensees to report, and the superintendent to collect, 4 9 information regarding delayed deposit transactions made, 4 10 affiliate relationships with other financial institutions, and 4 11 information regarding the age, ethnicity, and annual income of 4 12 each consumer of the licensee's delayed deposit services. 4 13 LSB 2157HH 81 4 14 kk:nh/gg/14
Text: HF345            Text: HF347 Complete Bill History