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 applicable to consumer credit transactions. Under current law, 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 still maintaining the 10 percent limit. Overall, the bill streamlines the regulations surrounding interest rates and service charges, providing clearer guidelines for lenders and borrowers alike.

Statutes affected:
Introduced: 536.13, 537.2501