Title XIII, COMMERCE (Ch. 505 - 554I)

1. In addition to contracting for a security interest pursuant to the provisions on security in consumer credit transactions under section 537.3301 , a seller in a consumer credit sale may secure the debt arising from the sale by contracting for a security interest in other prope…

1. If debts arising from two or more consumer credit sales, other than sales pursuant to open-end credit, are secured by cross-collateral or consolidated into one debt payable on a single schedule of payments, and the debt is secured by security interests taken with respect to on…

1. With respect to a sale or loan other than a supervised loan, a creditor may not use multiple agreements in what is in substance a single transaction, with intent to obtain a higher finance charge than would otherwise be permitted by the provisions of article 2 of this chapter …

1. A creditor may not take an assignment of earnings of the consumer for payment or as security for payment of a debt arising out of a consumer credit transaction. An assignment of earnings in violation of this section is unenforceable by the assignee of the earnings and revocabl…

Unless executed after default on a claim arising out of a consumer credit transaction, authorization for a judgment by confession on that claim pursuant to chapter 676 is void. Any other authorization by a consumer for any person to confess judgment on the claim, whenever execute…

With respect to a consumer credit sale or consumer lease, the creditor may not take a negotiable instrument other than a check or credit union share draft dated not later than ten days after its issuance as evidence of the obligation of the consumer. [C75, 77, 79, 81, §537.3307 ]…

1. Except as provided in subsection 2 , if any scheduled payment of a consumer credit transaction is more than twice as large as the average of earlier scheduled payments, the consumer has the right to refinance the amount of that payment at the time it is due without penalty, as…

A practice unlawful under section 714.16, subsection 2 , paragraph “b”, if done in connection with a consumer credit sale or consumer lease, is a violation of this chapter for which the consumer has a cause of action under section 537.5201, subsection 1 . The administrator has al…

1. In a consumer credit transaction, other than a consumer rental purchase agreement, if performance by a creditor is by delivery of goods, services, or both, in four or more installments, either on demand of the consumer or by prearranged scheduled performance, the consumer may …

A creditor shall not refuse to enter into a consumer credit transaction or impose finance charges or other terms or conditions more onerous than those regularly extended by that creditor to consumers of similar economic backgrounds due to any of the following: 1. The age, color, …

The obligation of a lessee upon expiration of a consumer lease may not exceed twice the average payment allocable to a monthly period under the lease. This limitation does not apply to charges for damages to the leased property or for other default. [C75, 77, 79, 81, §537.3401 ]

Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit transaction other than a consumer lease may not provide for any charges as a result of default by the consumer other than those authorized by this chapter …

1. This section neither limits the liability of nor imposes liability on a card issuer as a manufacturer, supplier, seller, or lessor of property or services sold or leased pursuant to the credit card. This section may subject a card issuer to claims and defenses of a cardholder …

1. With respect to a consumer credit sale or consumer lease, an assignee of the rights of the seller or lessor is subject to all claims and defenses of the consumer against the seller or lessor arising from the sale or lease of property or services, notwithstanding that the assig…

1. A lender, other than the issuer of a lender credit card, who, with respect to a particular transaction, makes a consumer loan for the purpose of enabling a consumer to buy or lease from a particular seller or lessor property or services, is subject to all claims and defenses o…

In a consumer credit sale or a sale in which the goods or services are paid for in whole or in part by a lender credit card or a consumer loan in which the lender is subject to defenses arising from the sale under section 537.3405 , a consumer has, in addition to all the rights a…

This part of article 3 may be known and may be cited as the “Consumer Rental Purchase Agreement Act” . 87 Acts, ch 80, §1

1. This part shall be liberally construed and applied to promote its underlying purposes and policies. 2. The underlying purposes and policies of this part are to: a. Define, simplify, and clarify the law governing consumer rental purchase agreements. b. Provide certain disclosur…

This part does not apply to, and an agreement which complies with this part is not governed by, the provisions regarding: 1. A consumer credit sale as defined in section 537.1301, subsection 13 . 2. A consumer lease as defined in section 537.1301, subsection 14 . 3. A consumer lo…

As used in this part, unless otherwise required by the context: 1. “Administrator” means the administrator as designated in section 537.6103 . 2. “Advertisement” means a commercial message in any medium, including signs, window displays, and price tags, that promotes, directly or…

In a consumer rental purchase agreement, the lessor shall disclose the following items, as applicable: 1. The total of scheduled payments accompanied by an explanation that this term means the “total dollar amount of lease payments you will have to make to acquire ownership” . 2.…

1. The disclosure information required by section 537.3605 and this section shall be disclosed in a consumer rental purchase agreement, and shall meet the following requirements: a. Be made clearly and conspicuously with items appearing in logical order and segregated as appropri…

The lessor shall furnish the lessee, without request, an itemized written receipt for each payment in cash, or any other time the method of payment itself does not provide evidence of payment. 87 Acts, ch 80, §7

1. A lessor shall not offer a consumer rental purchase agreement in which fifty percent of all lease payments necessary to acquire ownership of the leased property exceeds the cash price of the leased property. When fifty percent of all lease payments made by a lessee equals the …

1. A renegotiation occurs when an existing consumer rental purchase agreement is satisfied and replaced by a new consumer rental purchase agreement undertaken by the same lessor and lessee. A renegotiation is a new lease requiring new disclosures. 2. However, the following events…

A lessee shall not be required, as a condition to acquiring ownership, to make a payment that is more than twice the amount of a regular rental payment, or to pay lease payments totaling more than the cost to acquire ownership as disclosed pursuant to section 537.3605 . This sect…

A lessor shall not make a charge for any of the following: 1. Any insurance whether in connection with the transaction or otherwise, except that a charge may be made for property insurance on the leased property if the charge is clearly disclosed as optional and all other require…

1. In a consumer rental purchase agreement, the lessor may contract for and receive an initial nonrefundable administrative fee not to exceed ten dollars. If a security deposit is required by the lessor, the amount and conditions under which it is returned must be disclosed with …

A reinstatement fee as provided for in section 537.3616 shall not equal more than the outstanding balance of any missed payments and delinquency charges on those missed payments plus an additional reinstatement fee that shall not exceed five dollars. 87 Acts, ch 80, §13 Referred …

1. If the amount is separately disclosed in the agreement, the lessor may require the lessee to pay all applicable state and county sales, use, and personal property taxes levied as a result of the execution of the consumer rental purchase agreement, provided that the lessor pays…

1. An advertisement for a consumer rental purchase agreement shall not state or imply that a specific item is available at specific amounts or terms unless the lessor usually and customarily offers or will offer that item at those amounts or terms. 2. If an advertisement for a co…

1. A lessee who fails to make timely rental payments has the right to reinstate the original consumer rental purchase agreement without losing any rights or options previously acquired under the consumer rental purchase agreement if both of the following apply: a. Subsequent to h…

Unconscionability in consumer rental purchase agreements is governed by section 537.5108 . 87 Acts, ch 80, §17

An agreement of the parties to a consumer rental purchase agreement with respect to default on the part of the lessee is enforceable only to the extent that one of the following apply: 1. The lessee both fails to renew an agreement and also fails to return the rented property or …

1. In a consumer rental purchase agreement, after a lessee has been in default for three business days and has not voluntarily surrendered possession of the rented property, a lessor may give the lessee the notice provided in subsection 3 when the consumer has the right to cure a…

A person who willfully and intentionally violates a provision of this part is guilty of a serious misdemeanor. 87 Acts, ch 80, §20 Referred to in §537.3622

In case of a violation of a provision of this part with respect to a consumer rental purchase agreement, or a violation of the Iowa debt collection practices Act, article 7 of this chapter , where a debt arises in connection with a consumer rental purchase agreement, the lessee i…

Notwithstanding sections 537.3620 and 537.3621 , a failure to comply with a provision of this part which is due to a bona fide error may be corrected within thirty days after the date of execution of the consumer rental purchase agreement by the lessee. If so corrected, neither t…

An action shall not be brought under this part more than two years after the occurrence of the alleged violation. 87 Acts, ch 80, §23

1. The provisions of this part are subject to the powers and functions of the administrator as provided in article 6 of this chapter and to the debt collection practices as provided in article 7 of this chapter . However, section 537.6113, subsection 2 , does not apply to violati…

1. This article applies to insurance provided in relation to a consumer credit transaction. 2. A charge for insurance in excess of the rates promulgated by the commissioner of insurance, or otherwise made in violation of the law, including this chapter , or the rules promulgated …

This article shall be known and may be cited as the “Iowa Consumer Credit Code — Remedies and Penalties” . [C75, 77, 79, 81, §537.5101 ]

This part applies to actions or other proceedings to enforce rights arising from consumer credit transactions, to extortionate or unlawful extensions of credit, and to unconscionability. [C75, 77, 79, 81, §537.5102 ]

1. This section applies to a consumer credit sale of goods or services and a consumer loan. A consumer is not liable for a deficiency unless the creditor has disposed of repossessed or surrendered goods in good faith and in a commercially reasonable manner. 2. If the seller repos…

Prior to entry of judgment in an action against the consumer arising from a consumer credit transaction, the creditor may not attach unpaid earnings of the consumer, or earnings deposited in a financial institution by the consumer, by garnishment, attachment, or proceedings under…

1. For the purposes of this part: a. “Disposable earnings” means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld or assigned. b. “Garnishment” means any legal or equitable procedure through whi…