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 for 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 loan amount.

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 percentage limit. Overall, the bill streamlines the regulatory framework for loans and consumer credit transactions, providing clearer guidelines for lenders and borrowers alike.

Statutes affected:
Introduced: 536.13, 537.2501