This bill amends existing laws related to debt management programs in Iowa, specifically addressing the requirements for licensees and the handling of fees. It modifies Section 533A.8 to require licensees to maintain a separate bank or dedicated account for payments received from debtors for creditors, replacing the previous requirement for a trust account. Additionally, the bill removes the prohibition on licensees receiving consideration from third parties for services rendered to debtors when the debt management program does not involve the licensee receiving money from the debtor for distribution to creditors.

Furthermore, the bill establishes new conditions under which a licensee may request or receive payment for debt management services. These conditions include the requirement that the licensee has renegotiated or altered the terms of at least one debt, the debtor has made at least one payment under the agreement, and the fees charged must be proportionate to the individual debts involved. The bill also strikes certain subsections related to licensee requirements and fee agreements, and it exempts licensed debt management providers from regulations applicable to credit services organizations.

Statutes affected:
Introduced: 533A.8, 533A.9, 538A.2