§ 537.2402 — Finance charge for consumer loans pursuant to open-end credit

Iowa § 537.2402

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 537: CONSUMER CREDIT CODE

Text

1. Ifauthorizedtomakesupervisedloans,acreditormaycontractforandreceiveafinance
charge without limitation as to amount or rate with respect to a loan pursuant to open-end
credit as permitted in this section except as provided in section 537.2403.
2. For each billing cycle, a charge may be made which is a percentage of an amount not
exceeding the greatest of the following:
a. The average daily balance of the open-end account in the billing cycle for which the
charge is made, which is the sum of the amount unpaid each day during that cycle, divided
by the number of days in that cycle. The amount unpaid on a day is determined by adding to
the balance, if any, unpaid as of the beginning of that day all purchases and other debits and
deducting all payments and other credits made or received as of that day.
b. The balance of the open-end account at the beginning of the first day of the billing
cycle, after deducting all payments and credits made in the cycle except credits attributable
to purchases charged to the account during the cycle.
c. The median amount within a specified range including the balance of the open-end
account not exceeding that permitted by paragraph “a” or “b”. A charge may be
made pursuant to this paragraph only if the organization, subject to classifications and
differentiations it may reasonably establish, makes the same charge on all balances within
the specified range and if the percentage when applied to the median amount within
the range does not produce a charge exceeding the charge resulting from applying that
percentage to the lowest amount within the range by more than eight percent of the charge
on the median amount.

Legislative History

[C75, 77, 79, 81, §537.2402]