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

As used in this chapter , “Truth in Lending Act” means Tit. 1 of the Consumer Credit Protection Act , in subch. 1 of 15 U.S.C. ch. 41 , as amended, and includes regulations issued pursuant to that Act. [C75, 77, 79, 81, §537.1302 ; 82 Acts, ch 1153, §14 ] 89 Acts, ch 68, §1 ; 95 …

Other defined terms in this chapter and the sections in which they appear are: 1. “Closing costs” . Section 537.2501, subsection 1 , paragraph “e” . 2. “Computational period” . Section 537.2510, subsection 4 , paragraph “a” . 3. “Debt” . Section 537.7102, subsection 3 . 4. “Debt …

This article shall be known and may be cited as the “Iowa Consumer Credit Code — Finance Charges and Related Provisions” . [C75, 77, 79, 81, §537.2101 ]

Part 2 applies to consumer credit sales. Parts 3 and 4 apply to consumer loans. Part 5 applies to other charges and modifications with respect to consumer credit transactions. Part 6 applies to other credit transactions. [C75, 77, 79, 81, §537.2102 ]

1. With respect to a consumer credit sale, other than a sale pursuant to open-end credit, a creditor may contract for and receive a finance charge not exceeding the maximum charge permitted by the law of this state or the United States for similar creditors. In addition, with res…

1. With respect to a consumer credit sale made pursuant to open-end credit, a creditor may contract for and receive a finance charge without limitation as to amount or rate as permitted in this section . 2. For each billing cycle, a charge may be made which is a percentage of an …

1. As used in this part, “licensing authority” means the agency designated in chapter 524 , 533 , 536 , or 536A to issue licenses or otherwise authorize the conduct of business pursuant to the respective chapter or this chapter , and “licensee” includes any person subject to regu…

1. The licensing authority may issue to a person subject to regulation by that authority an order to show cause why the person’s license with respect to one or more specific places of business should not be suspended for a period not in excess of six months, or revoked. The order…

1. Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the licensing authority to determine whether the licensee is complying with the provisions of law. The recordkeeping system of a license…

1. For the purpose of discovering violations of this chapter or securing information lawfully required, the licensing authority shall examine periodically at intervals the licensing authority deems appropriate, but not less frequently than is required for other examinations of th…

With respect to a supervised loan in which the rate of finance charge is in excess of fifteen percent computed according to the actuarial method, and the amount financed is two thousand dollars or less, a lender shall not contract for a security interest in real property used as …

Supervised loans, not made pursuant to open-end credit and in which the amount financed is one thousand dollars or less, shall be scheduled to be payable in substantially equal installments at substantially equal periodic intervals except to the extent that the schedule of paymen…

A lender shall not carry on other business for the purpose of evasion or violation of this chapter at a location where the lender makes supervised loans. [C75, 77, 79, 81, §537.2309 ] 2022 Acts, ch 1021, §156

1. Except as provided in subsection 2 , a licensee authorized to make supervised loans pursuant to section 537.2301 may not engage in the business of selling or leasing tangible goods at a location where supervised loans are made. In this section , “location” means the entire spa…

1. Except as provided with respect to a finance charge for loans pursuant to open-end credit under section 537.2402 and loans secured by a certificate of title of a motor vehicle under section 537.2403 , a lender may contract for and receive a finance charge not exceeding the max…

1. If authorized to make supervised loans, a creditor may contract for and receive a finance charge without limitation as to amount or rate with respect to a loan pursuant to open-end credit as permitted in this section except as provided in section 537.2403 . 2. For each billing…

1. A lender shall not contract for or receive a finance charge exceeding twenty-one percent per year on the unpaid balance of the amount financed for a loan of money secured by a certificate of title to a motor vehicle used for personal, family, or household purpose except as aut…

1. In addition to the finance charge permitted by parts 2 and 4 , a creditor may contract for and receive the following additional charges: a. Official fees and taxes. b. Charges for insurance as described in subsection 2 . c. Amounts actually paid or to be paid by the creditor f…

1. With respect to a consumer credit transaction not pursuant to an open-end credit arrangement and other than a consumer lease or consumer rental purchase agreement, the parties may contract for a delinquency charge on any installment not paid in full within ten days after its d…

1. a. Before or after default in payment of a scheduled installment of a precomputed consumer credit transaction, the parties to the transaction may agree in writing to a deferral of all or part of one or more unpaid installments and the creditor may make at the time of deferral …

With respect to a consumer credit transaction in which the rate of finance charge required to be disclosed in the transaction pursuant to section 537.3201 does not exceed eighteen percent per year, other than a consumer lease or a consumer rental purchase agreement, the creditor …

1. In this section , “consumer credit transaction” does not include a consumer lease or a consumer rental purchase agreement. 2. If a consumer owes an unpaid balance to a creditor with respect to a consumer credit transaction and becomes obligated on another consumer credit trans…

1. If the agreement with respect to a consumer credit transaction other than a consumer lease or a consumer rental purchase agreement contains covenants by the consumer to perform certain duties pertaining to insuring or preserving collateral and the creditor pursuant to the agre…

With respect to a consumer credit transaction, the agreement may not provide for the payment by the consumer of attorney fees. However, in a consumer credit transaction with an amount financed exceeding twenty-five thousand dollars secured by an interest in land, the agreement ma…

The parties may agree at or within ten days prior to the time of conversion to add the unpaid balance of a consumer credit transaction, other than a consumer lease or a consumer rental purchase agreement, not made pursuant to open-end credit to the consumer’s open-end credit acco…

Subject to the provisions on prepayment and minimum charge under section 537.2510 , the consumer may prepay in full the unpaid balance of a consumer credit transaction, other than a consumer lease or a consumer rental purchase agreement, at any time. [C58, 62, 66, 71, 73, §322.3(…

1. Except as provided in this section , upon prepayment in full of a precomputed consumer credit transaction, the creditor shall rebate to the consumer an amount not less than the amount of rebate provided in subsection 2 , paragraph “a”, or redetermine the earned finance charge …

1. With respect to a credit transaction other than a consumer credit transaction, the parties may contract for the payment by the debtor of any finance or other charge as permitted by law. 2. With respect to a credit transaction which would be a consumer credit transaction if a f…

This article shall be known and may be cited as the “Iowa Consumer Credit Code — Regulation of Agreements and Practices” . [C75, 77, 79, 81, §537.3101 ]

Part 2 applies to disclosure with respect to consumer credit transactions, other than consumer rental purchase agreements, and the provision in section 537.3201 applies to a sale of an interest in land or a loan secured by an interest in land, without regard to the rate of financ…

A person upon whom the Truth in Lending Act imposes duties or obligations shall make or give to the consumer the disclosures, information and notices required of the person by that Act and in all respects shall comply with that Act. To the extent the Truth in Lending Act does not…

1. With respect to a consumer lease the lessor shall give to the consumer the following information: a. Brief description or identification of the goods. b. Amount of any payment required at the inception of the lease. c. Amount paid or payable for official fees, registration, ce…

The creditor shall give to the consumer a copy of any writing evidencing a consumer credit transaction, other than one pursuant to open-end credit, if the writing requires or provides for signature of the consumer. The writing evidencing the consumer’s obligation to pay under a c…

A consumer is authorized to pay the original creditor until the consumer receives notification of assignment of rights to payment pursuant to a consumer credit transaction and that payment is to be made to the assignee. A notification which does not reasonably identify the rights…

1. Whether or not a change is authorized by prior agreement, a creditor may make a change in the terms of an open-end credit account applying to any balance incurred after the effective date of the change only if the creditor delivers or mails to the consumer a written disclosure…

1. The creditor shall deliver or mail to the consumer, without request, a written receipt for each payment by coin or currency on an obligation pursuant to a consumer credit transaction. A periodic statement for a computational period showing a payment received by mail complies w…

An agreement pursuant to which an insurance premium loan is made shall contain the names of the insurance producer negotiating each policy or contract and of the insurer issuing each policy or contract, the number and inception date of, and premium for, each policy or contract, t…

1. No natural person, other than the spouse of the consumer, is obligated as a cosigner, comaker, guarantor, endorser, surety, or similar party with respect to a consumer credit transaction, unless before or contemporaneously with signing any separate agreement of obligation or a…

1. A seller, lessor, or lender shall not advertise, print, display, publish, distribute, utter or broadcast, or cause to be advertised, printed, displayed, published, distributed, uttered or broadcast in any manner, any false, misleading, or deceptive statement or representation …

A creditor shall not state the rate of a finance charge to a consumer, in response to any inquiry, or in any advertisement, in the form of an add-on or discount rate, or in any form other than the rate calculated according to the actuarial method as a percent per year on the unpa…

Every note which is a negotiable instrument as provided in section 554.3104 taken in a consumer credit transaction, if the writing requires or provides for a signature of the consumer, shall conspicuously show on its face the following: This is a consumer credit transaction. [C75…

1. With respect to a consumer who has an open-end credit account with a creditor, and with respect to a creditor which offers to some or all of its customers consumer credit sales of goods or services both pursuant to open-end credit and not pursuant to open-end credit, that cred…

1. With respect to a consumer credit sale, a seller may take a security interest in the property sold. In addition, a seller may take a security interest in goods upon which services are performed or in which goods sold are installed or to which they are annexed, or in land to wh…

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 …