This bill amends the regulations surrounding interest rates and charges on regulated loans and consumer credit transactions in Iowa. It removes existing provisions that allow the superintendent of banking to investigate and adjust the maximum rates of interest or charges on regulated loans. Instead, the bill establishes a uniform maximum interest rate of 3 percent per month for all regulated loans, simplifying the previous tiered structure that varied based on the amount of the loan.

Additionally, the bill modifies the allowable service charge for consumer credit transactions. Previously, creditors could charge a service fee not exceeding 10 percent of the amount financed or $30; the new legislation increases this cap to $100 while maintaining the 10 percent threshold. These changes aim to streamline the lending process and provide clearer guidelines for both lenders and consumers.

Statutes affected:
Introduced: 536.13, 537.2501