This bill amends existing laws regarding interest rates and charges on regulated loans and consumer credit transaction service charges in Iowa. It removes several subsections from Section 536.13, including the provisions that allowed 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 loan amount.

Additionally, the bill modifies the service charge provisions for consumer credit transactions. It raises the maximum allowable service charge from $30 to $100, while still capping it at the lesser of 10 percent of the amount financed. These changes aim to streamline the regulatory framework for loans and enhance the clarity of service charges for consumers.

Statutes affected:
Introduced: 536.13, 537.2501