Amendment H-8274 to HF 2326

Filed March 31, 2026 in the House by

In plain words

AI summary This amendment adds a rule that if a person fails to finish paying off a settled debt, the company must try to renegotiate the terms without charging any new fees for that debt. It also limits total fees to 30 percent of the total debt enrolled and requires that fees for debts with multiple payments be collected incrementally over at least one quarter of the repayment period.¹

What it changes

1. Page 1, after line 19 by inserting: “Sec. ___. Section 533A.8, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION . 10A. If a debtor who has contracted with a licensee to settle a debt has executed a debt settlement agreement with a creditor to settle such debt and has made at least one payment pursuant to that agreement, and the debtor subsequently fails to complete the payment terms required under that debt settlement agreement, the licensee shall attempt to renegotiate, resolve, reduce, or otherwise alter the terms of the debt with the creditor and shall not request or receive an additional fee from the debtor for any additional debt management service provided by the licensee for that debt. This subsection does not prohibit a licensee from requesting or receiving payment of any outstanding balance of the fee required by the contract between the licensee and debtor for that debt.”
2. Page 2, by striking line 9 and inserting “amount, not to exceed thirty percent of the total amount of debt enrolled by the debtor at the time of enrollment in the debt management program. The individual debt amount and the entire debt amount”
3. Page 2, by striking lines 13 and 14 and inserting: “Sec. ___. Section 533A.9, subsection 5, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
4. a. Notwithstanding any provision of this section to the contrary, the total aggregate fee or consideration charged by a licensee for all debt management services provided by the licensee to a debtor shall not exceed thirty percent of the total amount of debt enrolled by the debtor at the time of enrollment in the debt management program. b. A licensee may assess and collect the fee for debt management services on a per-debt basis as a debt is renegotiated, settled, reduced, or otherwise altered in a manner consistent with this section and applicable federal law.”
5. Page 2, before line 15 by inserting: “Sec. ___. Section 533A.9, Code 2026, is amended by adding the following new subsection: NEW SUBSECTION .
6. If a debt settlement agreement between a debtor and a creditor to settle a debt provides for the debtor to make more than one payment to the creditor, the licensee shall request or receive payment from the debtor of any fee for debt management services provided with respect to that debt incrementally over not less than one quarter of the length of the debtor’s period of repayment to such creditor.”
7. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book