House File 727 - Introduced HOUSE FILE 727 BY COOLING , WILBURN , JAMES , LEVIN , B. MEYER , KRESSIG , BAGNIEWSKI , MADISON , CROKEN , R. JOHNSON , AMOS JR. , SRINIVAS , EHLERT , OLSON , SCHOLTEN , WESSEL-KROESCHELL , and NIELSEN A BILL FOR An Act relating to the maximum finance charge on a consumer 1 credit sale. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1853YH (3) 91 nls/ko
H.F. 727 Section 1. Section 537.2201, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. The finance charge, calculated according to the 3 actuarial method, may not exceed twenty-one ten percent per 4 year on the unpaid balances of the amount financed. 5 Sec. 2. Section 537.2202, subsection 2, unnumbered 6 paragraph 1, Code 2025, is amended to read as follows: 7 For each billing cycle, a charge may be made which is a 8 percentage of an amount not exceeding the greatest of the 9 following , but in no case shall exceed ten percent per year on 10 the unpaid balance of the amount financed : 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanations substance by the members of the general assembly. 14 This bill relates to the maximum finance charge for consumer 15 credit sales. Under the bill, for consumer credit sales both 16 pursuant to open-end credit and not pursuant to open-end 17 credit, a finance charge may not exceed 10 percent per year on 18 the unpaid balance of the amount financed. 19 -1- LSB 1853YH (3) 91 nls/ko 1/ 1