|
Debt Laws | Federal
Laws | Consumer Protection
State Laws
Iowa Consumer Credit Code
Title XIII Commerce
Subtitle 3 Money and Credit
Chapter 537 Consumer Credit Code
Article 1 General Provision and Definitions
PART 1 SHORT TITLE, CONSTRUCTION, GENERAL PROVISIONS
PART 2 SCOPE AND JURISDICTION
PART 3 DEFINITIONS
PART 1 SHORT TITLE, CONSTRUCTION, GENERAL PROVISIONS
Articles 1 to 7 of this chapter shall be known and may be cited as the "Iowa Consumer Credit Code."
1. This chapter shall be liberally construed and applied to promote its underlying purposes and policies.
2. The underlying purposes and policies of this chapter are to:
a. Simplify, clarify and modernize the law governing retail installment sales and other consumer credit.
b. Provide rate ceilings for certain creditors in order to assure an adequate supply of credit to consumers.
c. Further consumer understanding of the terms of credit transactions and foster competition among suppliers of consumer credit so that consumers may obtain credit at reasonable cost.
d. Protect consumers against unfair practices by some suppliers, solicitors or collectors of consumer credit, having due regard for the interests of legitimate and scrupulous creditors.
e. Permit and encourage the development of fair and economically sound consumer credit practices.
f. Conform the regulation of disclosure in consumer credit transactions to the Truth in Lending Act.
g. Make the law, including administrative rules, more uniform among the various jurisdictions.
3. A reference to a requirement imposed by this chapter includes reference to a related rule of the administrator adopted pursuant to this chapter.
Unless displaced by the particular provisions of this chapter, the uniform commercial code as provided in chapter 554 and the principles of law and equity, including the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy or other validating or invalidating cause supplement its provisions.
This chapter being a general Act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
1. Except in settlement of a bona fide dispute, a consumer may not waive or agree to forego rights or benefits under this Act.
2. A claim by a consumer against a creditor relating to an excess charge, any other civil violation of this chapter, or a civil penalty, or a claim by a creditor against a consumer for default or breach of a civil duty imposed by this chapter, may be settled by agreement if the claim is disputed in good faith.
3. A claim against a consumer, whether or not disputed, may be settled for less value than the amount claimed.
4. A settlement in which the consumer waives or agrees to forego rights or benefits under this chapter is invalid if the court as a matter of law finds the settlement to have been unconscionable at the time it was made. The competence of the consumer, any deception or coercion practiced upon the consumer, the nature and extent of the legal advice received by the consumer, and the value of the consideration may be considered, among other factors, with respect to the issue of unconscionability.
1. This chapter prescribes maximum charges for certain creditors, except lessors and those excluded in section 537.1202 , extending credit in consumer credit transactions.
2. This chapter does not displace limitations on powers of credit unions, savings and loan associations, or other thrift institutions whether organized for the profit of shareholders or as mutual organizations.
3. This chapter does not displace:
a. Limitations on powers of supervised financial organizations with respect to the amount of a loan to a single borrower, the ratio of a loan to the value of collateral, the duration of a loan secured by an interest in land, or other similar restrictions designed to protect deposits.
b. Limitations on powers an organization is authorized to exercise under the laws of this state or the United States.
Every contract or duty within this chapter imposes an obligation of good faith in its performance or enforcement.
PART 2 SCOPE AND JURISDICTION
1. This chapter applies to:
a. A transaction, or acts, practices or conduct with respect to a transaction, if the transaction is entered into in this state, except that a transaction involving other than open end credit or acts, practices or conduct with respect to such a transaction shall not subject any person to damages or penalty under article 5 of this chapter, or administrative enforcement under article 6, part 1.
(1) If the buyer, lessee or debtor was physically located outside of this state, at the time the buyer, lessee or debtor signed the writing evidencing the transaction or made, in face-to-face solicitation, a written or oral offer to enter into the transaction,
(2) If the transaction or acts, practices or conduct with respect to the transaction were not in violation of law in the state in which the buyer, lessee or debtor was physically located, and
(3) If, with respect to charges and agreements, the person does not collect or enforce that transaction except to the extent permitted by this chapter.
b. A transaction, or acts, practices or conduct with respect to a transaction, if it is modified in this state, without regard to where the transaction is entered into, except that acts, practices, conduct, disclosures, charges or provisions of agreements not in violation of law in the state where they occurred or were entered into, shall not subject any person to damages or penalty under article 5 or administrative enforcement under article 6, part 1, if, with respect to acts, practices, conduct or disclosures, they occurred outside this state and before a modification in this state, and if, with respect to charges and agreements, they are not collected or enforced by that person except to the extent permitted by this chapter. A person shall not be required to obtain a license under section 537.2301 solely because the person modifies a transaction in this state.
c. Acts, practices or conduct in this state in the solicitation, inducement, negotiation, collection or enforcement of a transaction, without regard to where it is entered into or modified; including, but not limited to, acts, practices or conduct in violation of sections 537.3209 , 537.3210 , 537.3311 , 537.3501 , article 5, parts 1 and 3, and article 7.
2. For the purposes of this section, a transaction is entered into or modified in this state if any of the following apply:
a. In a transaction involving other than open end credit:
(1) If the buyer, lessee or debtor is a resident of this state at the time the person extending credit solicits the transaction or modification, whether personally, by mail or by telephone, unless the parties have agreed that the law of the residence of the buyer, lessee or debtor applies, in which case that law applies.
(2) If the buyer, lessee or debtor is a resident of this state at the time the person extending credit receives either a signed writing evidencing the transaction or modification, or a written or oral offer of the buyer, lessee or debtor to enter into or modify the transaction.
(3) If the transaction otherwise has significant contacts with this state, unless the buyer, lessee or debtor is not a resident of this state at the times designated in subsection 2, paragraph "a", subparagraphs (1) and (2), and the parties have agreed that the law of the buyer's, lessee's, or debtor's residence applies. A person shall not be required to obtain a license under section 537.2301 solely because this chapter applies to a transaction pursuant to this subparagraph.
b. In an open end credit transaction:
(1) If the buyer, lessee or debtor is a resident of this state either at the time the buyer, lessee or debtor forwards or otherwise gives to the person extending credit a written or oral communication of the intention to establish the open end transaction, or at the time the person extending credit forwards or otherwise gives to the buyer, lessee or debtor a written or oral communication giving notice to the buyer, lessee or debtor of the right to enter into open end transactions with such person, unless the parties have agreed that the law of the residence of the buyer, lessee or debtor applies in which case that law shall apply.
(2) If the transaction otherwise has significant contacts with this state, unless the buyer, lessee or debtor is not a resident of this state at the times designated in subsection 2, paragraph "a", subparagraph (1), and the parties have agreed that the law of the buyer's, lessee's, or debtor's residence applies. A person shall not be required to obtain a license under section 537.2301 solely because this chapter applies to a transaction pursuant to this subparagraph.
c. In any credit transaction, if the parties have agreed that the law of the residence of the buyer, lessee or debtor applies and the buyer, lessee or debtor is a resident of this state at any time designated, with respect to a transaction other than open end, in subsection 2, paragraph "a", subparagraphs (1) and (2) or, with respect to an open end credit transaction, in subsection 2, paragraph "b", subparagraph (1).
3. For the purposes of this section, "modification" shall include, but not be limited to, any alteration in the maturity, schedule of payments, amount financed, rate of finance charge or other term of a transaction.
4. For the purposes of this chapter, the residence of a buyer, lessee or debtor is the address given by that person as the person's residence in a writing signed by the person in connection with a transaction until the person notifies the person extending credit of a different address as the person's residence, and it is then the different address.
5. Except as provided in subsection 1, paragraph "c", and subsection 6, a transaction entered into or modified in another jurisdiction is valid and enforceable in this state according to its terms to the extent that it is valid and enforceable under the laws of the other jurisdiction.
6. A provision of an agreement made by a buyer, lessee or debtor is invalid:
a. Which provides, if the buyer, lessee or debtor is a resident of this state at the times designated in subsection 2, paragraph "a", subparagraphs (1) and (2) and subsection 2, paragraph "b", subparagraph (1):
(1) That the law of another jurisdiction shall apply, except as provided in subsection 2, paragraph "a", subparagraph (1) and in subsection 2, paragraph "b", subparagraph (1).
(2) That the buyer, lessee or debtor consents to be subject to the process of another jurisdiction.
(3) That the buyer, lessee or debtor appoints an agent to receive service of process.
(4) That venue is fixed at a particular place.
(5) That the consumer consents to the jurisdiction of a court that does not otherwise have jurisdiction.
b. If a provision would negate subsection 1, paragraph "b".
7. The following provisions of this chapter specify the applicable law governing certain cases:
a. Section 537.6102 specifies the applicability of article 6, part 1.
b. Section 537.6201 specifies the applicability of article 6, part 2.
This chapter does not apply to:
1. Extensions of credit to government or governmental agencies or instrumentalities.
2. Except as otherwise provided in article 4, the sale of insurance if the insured is not obligated to pay installments of the premium and the insurance may terminate or be canceled after nonpayment of an installment of the premium.
3. Transactions under public utility or common carrier tariffs if a subdivision or agency of this state or of the United States regulates the charges for the services involved, the charges for delayed payment, and any discount allowed for early payment.
4. Transactions in securities or commodities accounts with a broker-dealer registered with the securities and exchange commission.
5. Pawnbrokers who are licensed and whose rates and charges are regulated under or pursuant to ordinances of cities or statutes of this state, except with respect to the provisions on compliance with the Truth in Lending Act in section 537.3201 , civil liability for violation of disclosure provisions in section 537.5203 , criminal penalties for disclosure violations in section 537.5302 , and powers and functions of the administrator with respect to disclosure violations.
1. The district court of this state may exercise jurisdiction over any person with respect to any conduct in this state governed by this chapter or with respect to any claim arising from a transaction subject to this chapter. In addition to any other method provided by rule or by statute, personal jurisdiction over a person may be acquired in a civil action or proceeding instituted in the district court by the service of process in the manner provided by this section.
2. If a person is not a resident of this state or is a corporation not authorized to do business in this state and engages in any conduct in this state governed by this chapter, or engages in a transaction subject to this chapter, the person may designate an agent upon whom service of process or original notice may be made in this state. The agent shall be a resident of state or a corporation authorized to do business in this state. The designation shall be in a writing and filed with the secretary of state. If no designation is made and filed or if process or original notice cannot be served in this state upon the designated agent, process or original notice may be served upon the secretary of state, in the manner provided in section 617.3 for service upon nonresident persons and foreign corporations which have made contracts with residents of Iowa, and the provisions of that section relating to the service of process or original notice apply.
PART 3 DEFINITIONS
As used in this chapter, unless otherwise required by the context:
1. "Actuarial method" means the method of allocating payments made on a debt between the amount financed and the finance charge, pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed. The administrator may adopt rules not inconsistent with the Truth in Lending Act further defining the term and prescribing its application.
2. "Administrator" means the administrator designated in section 537.6103.
3. "Affiliate" as used in reference to a state bank means the same as defined in section 524.1101 . "Affiliate" as used in reference to a national banking association means the same as defined in section 524.1101 , except that the term "national banking association" shall be substituted for the term "state bank". "Affiliate" as used in reference to a savings and loan association shall mean the same as defined in 12 C.F.R. § 561.4.
4. "Agreement" means the oral or written bargain of the parties in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance.
5. "Amount financed" means:
a. In the case of a sale, the cash price of the goods, services, or interest in land, plus the amount actually paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest in, a lien on, or a debt with respect to property traded in, less the amount of any down payment whether made in cash or in property traded in, plus additional charges if permitted under paragraph "c".
b. In the case of a loan, the net amount paid to, receivable by, or paid or payable for the account of the debtor, plus the amount of any discount excluded from the finance charge under subsection 21, paragraph "b" , subparagraph (3), plus additional charges if permitted under paragraph "c" of this subsection.
c. In the case of a sale or loan, additional charges permitted under section 537.2501 , to the extent that payment is deferred, that the charge is not otherwise included, in the amount permitted respectively in paragraph "a" or "b" , and that the charge is authorized by and disclosed to the consumer as required by law.
6. "Billing cycle" means the time interval between periodic billing statement dates.
7. "Card issuer" means a person who issues a credit card.
8. "Cardholder" means a person to whom a credit card is issued or who has agreed with the card issuer to pay obligations arising from the issuance or use of the card to or by another person.
9. "Cash price" of goods, services, or an interest in land means, except in the case of a consumer rental purchase agreement, the price at which they are sold by the seller to cash buyers in the ordinary course of business, and may include the cash price of accessories or services related to the sale, such as delivery, installation, alterations, modifications, and improvements, and taxes to the extent imposed on a cash sale of the goods, services, or interest in land.
10. Conspicuous. A term or clause is conspicuous when it is so written that a reasonable person against whom it is to operate ought to have noticed it. Whether or not a term or clause is conspicuous is for decision by the court.
11. "Consumer" means the buyer, lessee, or debtor to whom credit is granted in a consumer credit transaction.
12. "Consumer credit transaction" means a consumer credit sale or consumer loan, or a refinancing or consolidation thereof, or a consumer lease, or a consumer rental purchase agreement.
13. Consumer credit sale.
a. Except as provided in paragraph "b" , a consumer credit sale is a sale of goods, services, or an interest in land in which all of the following are applicable:
(1) Credit is granted either pursuant to a seller credit card or by a seller who regularly engages as a seller in credit transactions of the same kind.
(2) The buyer is a person other than an organization.
(3) The goods, services or interest in land are purchased primarily for a personal, family or household purpose.
(4) Either the debt is payable in installments or a finance charge is made.
(5) With respect to a sale of goods or services, the amount financed does not exceed twenty-five thousand dollars.
b. A "consumer credit sale" does not include:
(1) A sale in which the seller allows the buyer to purchase goods or services pursuant to a lender credit card.
(2) A sale of an interest in land if the finance charge does not exceed twelve percent per year calculated on the actuarial method on the assumption that the debt will be paid according to the agreed terms and will not be paid before the end of the agreed term.
(3) A consumer rental purchase agreement as defined in section 537.3604.
14. Consumer lease.
a. Except as provided in paragraph "b" , a consumer lease is a lease of goods in which all of the following are applicable:
(1) The lessor is regularly engaged in the business of leasing.
(2) The lessee is a person other than an organization.
(3) The lessee takes under the lease primarily for a personal, family, or household purpose.
(4) The amount payable under the lease does not exceed twenty-five thousand dollars.
(5) The lease is for a term exceeding four months.
b. A consumer lease does not include a consumer rental purchase agreement as defined in section 537.3604.
15. Consumer loan.
a. Except as provided in paragraph "b" , a "consumer loan" is a loan in which all of the following are applicable:
(1) The person is regularly engaged in the business of making loans.
(2) The debtor is a person other than an organization.
(3) The debt is incurred primarily for a personal, family or household purpose.
(4) Either the debt is payable in installments or a finance charge is made.
(5) The amount financed does not exceed twenty-five thousand dollars.
b. A "consumer loan" does not include:
(1) A sale or lease in which the seller or lessor allows the buyer or lessee to purchase or lease pursuant to a seller credit card.
(2) A debt which is secured by a first lien on real property and which is incurred primarily for the purpose of acquiring that real property, or refinancing a contract for deed to that real property, or constructing on that real property a building containing one or more dwelling units.
(3) A loan financed by the Iowa finance authority and secured by a lien on land.
(4) A consumer rental purchase agreement as defined in section 537.3604.
c. In determining which loans are consumer loans under this subsection the rules of construction stated in this paragraph shall be applied:
(1) A debt is incurred primarily for the purpose to which a majority of the loan proceeds are applied or are designated by the debtor to be applied.
(2) Loan proceeds used to refinance or pay a prior loan owed by the same borrower are incurred for the same purposes and in the same proportion as the principal of the loan refinanced or paid.
(3) Loan proceeds used to pay a prior loan by a different borrower are incurred for the new borrower's purposes in agreeing to pay the prior loan.
(4) The assumption of a loan by a different borrower is treated as if the new borrower had obtained a new loan and had used all of the proceeds to pay the loan assumed.
(5) The provisions of this paragraph shall not be construed to modify or limit the provisions of section 535.8 , subsection 2, paragraph "c" or "e".
16. "Credit" means the right granted by a person extending credit to a person to defer payment of debt, to incur debt and defer its payment, or to purchase property or services and defer payment therefor.
17. "Credit card" means a card or device issued under an arrangement pursuant to which a card issuer gives a cardholder the privilege of purchasing or leasing property or purchasing services, obtaining loans, or otherwise obtaining credit from the card issuer or other persons. A transaction is "pursuant to a credit card" if credit is obtained according to the terms of the arrangement by transmitting information contained on the card or device orally, in writing, by mechanical or automated methods, or in any other manner. A transaction is not "pursuant to a credit card" if the card or device is used solely to identify the cardholder and credit is not obtained according to the terms of the arrangement.
18. "Creditor" means the person who grants credit in a consumer credit transaction or, except as otherwise provided, an assignee of a creditor's right to payment, but use of the term does not in itself impose on an assignee any obligation of the assignee's assignor. In the case of credit granted pursuant to a credit card, the "creditor" is the card issuer and not another person honoring the credit card.
19. "Credit union service organization" means an organization, corporation, or association whose membership or ownership is primarily confined or restricted to credit unions or organizations of credit unions and whose purpose is primarily designed to provide services to credit unions, organizations of credit unions, or credit union members.
20. "Earnings" means compensation paid or payable to an individual or for the individual's account for personal services rendered or to be rendered by the individual, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension, retirement or disability program.
21. Finance charge.
a. Except as otherwise provided in paragraph "b" , "finance charge" means the sum of all charges payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or as a condition of the extension of credit, including any of the following types of charges which are applicable:
(1) Interest or any amount payable under a point, discount or other system of charges, however denominated, except that with respect to a consumer credit sale of goods or services a cash discount of five percent or less of the stated price of goods or services which is offered to the consumer for payment by cash, check or the like either immediately or within a period of time, is not part of the finance charge for the purpose of determining maximum charges pursuant to section 537.2401 . A cash discount permitted by this subparagraph is not part of the finance charge for the purpose of determining compliance with section 537.3201 if it is properly disclosed as required by the Truth in Lending Act as amended to and including July 1, 1982 and regulations issued pursuant to that Act prior to July 1, 1982.
(2) Time price differential, credit service, service, carrying or other charge, however denominated.
(3) Premium or other charge for any guarantee or insurance protecting the creditor against the consumer's default or other credit loss.
(4) Charges incurred for investigating the collateral or credit-worthiness of the consumer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable, unless the creditor had no notice of the charges when the credit was granted.
b. "Finance charge" does not include:
(1) Charges as a result of default or delinquency if made for actual unanticipated late payment, delinquency, default, or other like occurrence unless the parties agree that these charges are finance charges. A charge is not made for actual unanticipated late payment, delinquency, default or other like occurrence if imposed on an account which is or may be debited from time to time for purchases or other debts and, under its terms, payment in full or at a specified amount is required when billed, and in the ordinary course of business the consumer is permitted to continue to have purchases or other debts debited to the account after the imposition of the charge.
(2) Additional charges as defined in section 537.2501 , or deferral charges as defined in section 537.2503.
(3) A discount, if a creditor purchases or satisfies obligations of a cardholder pursuant to a credit card and the purchase or satisfaction is made at less than the face amount of the obligation.
(4) Lease payments for a consumer rental purchase agreement, or charges specifically authorized by this chapter for consumer rental purchase agreements.
22. "Gift certificate" means a merchandise certificate conspicuously designated as a gift certificate, and purchased by a buyer for use by a person other than the buyer.
23. a. "Goods" includes, but is not limited to:
(1) "Goods" as described in section 554.2105 , subsection 1.
(2) Goods not in existence at the time the transaction is entered into.
(3) Things in action.
(4) Investment securities.
(5) Mobile homes regardless of whether they are affixed to the land.
(6) Gift certificates.
b. "Goods" excludes money, chattel paper, documents of title, instruments and merchandise certificates other than gift certificates.
24. "Insurance premium loan" means a consumer loan that is made for the sole purpose of financing the payment by or on behalf of an insured of the premium on one or more policies or contracts issued by or on behalf of an insurer, is secured by an assignment by the insured to the lender of the unearned premium on the policy or contract, and contains an authorization to cancel the policy or contract financed.
25. "Lender" means a person who makes a loan or, except as otherwise provided in this Act, a person who takes an assignment of a lender's right to payment, but use of the term does not in itself impose on an assignee any obligation of the lender.
26. "Lender credit card" means a credit card issued by a lender.
27. a. "Loan" means any of the following, except as provided in paragraph "b":
(1) The creation of debt by the lender's payment of or agreement to pay money to the debtor or to a third person for the account of the debtor.
(2) The creation of debt by a credit to an account with the lender upon which the debtor is entitled to draw immediately.
(3) The creation of debt pursuant to a lender credit card in any manner, including a cash advance or the card issuer's honoring a draft or similar order for the payment of money drawn or accepted by the debtor, paying or agreeing to pay the debtor's obligation, or purchasing or otherwise acquiring the debtor's obligation from the obligee or the obligee's assignees.
(4) The creation of debt by a cash advance to a debtor pursuant to a seller credit card.
(5) The forbearance of debt arising from a loan.
b. "Loan" does not include:
(1) A card issuer's payment or agreement to pay money to a third person for the account of a debtor if the debt of the debtor arises from a sale or lease and results from use of a seller credit card.
(2) The forbearance of debt arising from a sale or lease.
28. "Merchandise certificate" means a writing not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services. Sale of a merchandise certificate on credit is a credit sale beginning at the time the certificate is redeemed.
29. "Mortgage lender" means a domestic or foreign corporation authorized in this state to make loans secured by mortgages or deeds of trust.
30. "Official fees" means:
a. Fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, terminating, or satisfying a security interest related to a consumer credit transaction.
b. Premiums payable for insurance in lieu of perfecting a security interest otherwise required by the creditor in connection with the transaction, if the premium does not exceed the fees and charges described in paragraph "a" which would otherwise be payable.
31. "Open-end credit" means an arrangement, other than a consumer rental purchase agreement, pursuant to which all of the following are applicable:
a. A creditor may permit a consumer, from time to time, to purchase or lease on credit from the creditor or pursuant to a credit card, or to obtain loans from the creditor or pursuant to a credit card.
b. The amounts financed and the finance and other appropriate charges are debited to an account.
c. The finance charge, if made, is computed on the account periodically.
d. Either the consumer has the privilege of paying in full or in installments, or the transaction is a consumer credit transaction solely because a delinquency charge or the like is treated as a finance charge pursuant to subsection 21, paragraph "b" , subparagraph (1) of this section or the creditor otherwise periodically imposes charges computed on the account for delaying payment of it and permits the consumer to continue to purchase or lease on credit.
32. "Organization" means a corporation, government or governmental subdivision or agency, trust, estate, cooperative, or association.
33. "Payable in installments" means that payment is required or permitted by agreement to be made in more than four periodic payments, excluding a down payment. If any periodic payment other than the down payment under an agreement requiring or permitting two or more periodic payments is more than twice the amount of any other periodic payment excluding the down payment, a transaction is "payable in installments".
34. "Person" means:
a. A natural person, partnership, or an individual.
b. An organization.
35. a. "Person related to" with respect to a natural person or an individual means any of the following:
(1) The spouse of the individual.
(2) A brother, brother-in-law, sister, or sister-in-law of the individual.
(3) An ancestor or lineal descendant of the individual or the individual's spouse.
(4) Any other relative, by blood or marriage, of the individual or the individual's spouse, if the relative shares the same home with the individual.
b. "Person related to" with respect to an organization means:
(1) A person directly or indirectly controlling, controlled by or under common control with the organization.
(2) An officer or director of the organization or a person performing similar functions with respect to the organization or to a person related to the organization.
(3) The spouse of a person related to the organization.
(4) A relative by blood or marriage of a person related to the organization who shares the same home with the person.
36. A "precomputed consumer credit transaction" is a consumer credit transaction, other than a consumer lease or a consumer rental purchase agreement, in which the debt is a sum comprising the amount financed and the amount of the finance charge computed in advance. A disclosure required by the Truth in Lending Act does not in itself make a finance charge or transaction precomputed.
37. "Presumed" or "presumption" means that the trier of fact must find the existence of the fact presumed unless and until evidence is introduced which would support a finding of its nonexistence.
38. "Sale of goods" includes, but is not limited to, any agreement in the form of a bailment or lease of goods if the bailee or lessee pays or agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the goods involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the goods upon full compliance with the terms of the agreement. "Sale of goods" does not include a consumer rental purchase agreement.
39. "Sale of an interest in land" includes, but is not limited to, a lease in which the lessee has an option to purchase the interest, by which all or a substantial part of the rental or other payments previously made by the lessee are applied to the purchase price.
40. "Sale of services" means furnishing or agreeing to furnish services for a consideration and includes making arrangements to have services furnished by another.
41. "Seller" means a person who makes a sale or, except as otherwise provided in this chapter, a person who takes an assignment of the seller's right to payment, but use of the term does not in itself impose on an assignee any obligation of the seller.
42. "Seller credit card" means either of the following:
a. A credit card issued primarily for the purpose of giving the cardholder the privilege of using the credit card to purchase or lease property or services from the card issuer, persons related to the card issuer, persons licensed or franchised to do business under the card issuer's business or trade name or designation, or from any of these persons and from other persons as well.
b. A credit card issued by a person other than a supervised lender primarily for the purpose of giving the cardholder the privilege of using the credit card to purchase or lease property or services from at least one hundred persons not related to the card issuer.
43. "Services" includes, but is not limited to:
a. Work, labor, and other personal services.
b. Privileges or benefits with respect to transportation, hotel and restaurant accommodations, education, entertainment, recreation, physical culture, hospital accommodations, funerals, cemetery accommodations, and the like.
c. Insurance.
44. "Supervised financial organization" means a person, other than an insurance company or other organization primarily engaged in an insurance business, which is organized, chartered, or holding an authorization certificate pursuant to chapter 524 , 533 , or 534 , or pursuant to the laws of any other state or of the United States which authorizes the person to make loans and to receive deposits, including a savings, share, certificate or deposit account, and which is subject to supervision by an official or agency of this state, such other state, or of the United States.
45. "Supervised loan" means a consumer loan, including a loan made pursuant to open end credit, in which the rate of the finance charge, calculated according to the actuarial method, exceeds the rate of finance charge permitted in chapter 535 .
With respect to a consumer loan made pursuant to open end credit, the finance charge shall be deemed not to exceed the rate permitted in chapter 535 if the finance charge contracted for and received does not exceed a charge for each monthly billing cycle which is one-twelfth of that rate multiplied by the average daily balance of the open end account in the billing cycle for which the charge is made. The average daily balance of the open end account is the sum of the amount unpaid each day during that cycle divided by the number of days in the cycle. The amount unpaid on a day is determined by adding to the balance, if any, unpaid as of the beginning of that day all purchases and other debits and deducting all payments and other credits made or received as of that day. If the billing cycle is not monthly, the finance charge shall be deemed not to exceed that rate per year if the finance charge contracted for and received does not exceed a percentage which bears the same relation to that rate as the number of days in the billing cycle bears to three hundred sixty-five. A billing cycle is monthly if the closing date of the cycle is the same date each month or does not vary by more than four days from the regular date.
As used in this chapter, "Truth in Lending Act" means Title 1 of the Consumer Credit Protection Act, in subchapter 1 of 15 U.S.C. ch. 41, as amended to and including January 1, 1998, and includes regulations issued pursuant to that Act prior to January 1, 1998.
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 collection" . Section 537.7102 , subsection 4.
5. "Debt collector" . Section 537.7102 , subsection 5.
6. "Disposable earnings" . Section 537.5105 , subsection 1, paragraph "a".
7. "Garnishment" . Section 537.5105 , subsection 1, paragraph "b".
8. "Interval" . Section 537.2510 , subsection 4, paragraph "b".
9. "Location" . Section 537.2310 , subsection 1.
10. "Pursuant to a credit card" . Section 537.1301 , subsection 17.
11. "Residence" . Section 537.1201 , subsection 4.
IA Iowa Official State Statutes
 Back to Debt Related Laws
|
