Bills › 91st General Assembly
Relating to debt management programs, services, fees, and licensee requirements
Where it is now
- Done: IntroducedJanuary 28, 2026
- Done: SubcommitteeJanuary 28, 2026
- Done: Senate committeeFebruary 11, 2026
- Skipped: Passes the SenateContinued as SF 2298
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 2298 → Its progress continues under the new number. Go to SF 2298 What’s a funnel?
What’s in it
AI summary Companies that manage debt for others can now receive payments from third parties for their services. These businesses must use a separate bank account to hold money meant for creditors. Additionally, they can only charge certain fees after they have successfully changed the terms of a person's debt and that person has made at least one payment.1
Read the official explanation
This bill relates to debt management, services, fees, and licensee requirements. Under current law, if a debt management program (program) is based on a model which requires a licensee to receive money or evidences thereof from a debtor to distribute to the debtor’s creditors, the licensee who receives the money for distribution shall maintain a separate bank trust account in which all payments received from the debtor for the benefit of creditors shall be deposited and shall remain until a remittance is made to either the debtor or the creditor. Under the bill, a licensee shall maintain a separate bank account or dedicated account for such purpose. _____ based on a model which requires a licensee to receive money or evidences thereof from the debtor to distribute to the debtor’s creditors the debtor shall maintain full control of and access to any moneys set aside for payment to creditors, and the licensee may not receive consideration from any third party in connection with services rendered to a debtor. The bill eliminates the prohibition on a licensee receiving consideration from a third party in connection with services rendered to a debtor.9(4). Under the bill, a licensee may not request or receive payment of a fee for services unless: (1) the licensee has renegotiated, resolved, reduced, or otherwise altered the terms of a debt pursuant to a resolution agreement or other contractual agreement between the debtor and the creditor; (2) the debtor has made at least one payment pursuant to the agreement; and (3) to the extent that debts enrolled in a service are renegotiated, resolved, reduced, or otherwise altered individually, the fee or consideration for the service bears the same proportional relationship to the total fee for altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount as owed at the time the debt was enrolled in the service, and the same percent is charged for each individual debt enrolled in the program. Under the bill, a person licensed to provide debt management services is exempt from Code chapter 538A (credit services organizations).9(5) (fee agreed in advance).
Changed since by amendment H-8274; see Amendments.
Senate subcommittee
Named January 28, 2026. On February 3, 2026 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
2 for · 1 against · 3 undecided · Who →
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91st General Assembly