The 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 previous tiered interest rate structure, and establishes a new maximum interest rate of three percent per month on regulated loans. Additionally, it allows licensees to lend amounts not exceeding the threshold defined in section 537.1301 while charging interest at this new maximum rate.

Furthermore, the bill modifies the service charge for consumer credit transactions, changing the cap from ten percent of the amount financed or thirty dollars to either three percent of the amount financed or one hundred dollars. This adjustment aims to simplify the fee structure and provide clearer guidelines for lenders and consumers alike. Overall, the bill seeks to streamline regulations surrounding interest rates and service charges in consumer lending.

Statutes affected:
Introduced: 536.13, 537.2501
Reprinted: 536.13, 537.2501