Bills › 89th General Assembly
Relating to service charges on consumer credit transactions
Sponsored by the Senate Commerce Committee
Topics:Business & economy
Where it is now
- Done: IntroducedJanuary 19, 2021
- Done: SubcommitteeJanuary 19, 2021
- Done: Senate committeeFebruary 2, 2021
- Done: Passes the SenateFebruary 9, 202148–0
- Skipped: House committeeSkipped
- Done: Passes the HouseFebruary 2, 202186–2
- Stopped: To the GovernorDied when the General Assembly ended
- Done: Signed into lawMarch 8, 2021
HF 235 became law → The same legislation passed as HF 235, so this version was set aside. Go to HF 235 What’s a funnel?
What’s in it
AI summary Lenders would be allowed to charge service fees on consumer credit deals even if the loan does not charge interest. This change also means lenders can no longer be stopped from collecting a minimum fee when someone pays off their credit early. These rules would affect people taking out consumer loans or credit.1
Read the official explanation
This bill relates to service charges on consumer credit transactions. Current law authorizes a creditor to contract for and receive a service charge in an amount not to exceed the lesser of percent of the amount financed or $30 for an interest-bearing consumer credit transaction. Additionally, current law prohibits a creditor from collecting a minimum charge upon prepayment of a consumer credit transaction if the creditor collected a service charge in association with an interest-bearing consumer credit transaction. The bill strikes from both of these provisions the requirement that the consumer credit transaction bear interest.
Senate subcommittee
Named January 19, 2021 (as SSB 1048). On January 26, 2021 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Lobbying
1 for · 0 against · 7 undecided · Who →
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89th General Assembly