§ 537.2502 — Delinquency charges

Iowa § 537.2502

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

Text

1. With respect to a consumer credit transaction not pursuant to an open-end credit
arrangement and other than a consumer lease or consumer rental purchase agreement, the
parties may contract for a delinquency charge on any installment not paid in full within ten
days after its due date, as originally scheduled or as deferred, in an amount as follows:
a. For a precomputed transaction, an amount not exceeding the greater of either of the
following:
(1) Five percent of the unpaid amount of the installment, or a maximum of thirty dollars.
(2) The deferral charge that would be permitted to defer the unpaid amount of the
installment for the period that it is delinquent.
b. Foraninterest-bearingtransaction, anamountnotexceedingfivepercentoftheunpaid
amount of the installment, or a maximum of thirty dollars.
2. A delinquency charge under subsection 1 may be collected only once on an installment
however long it remains in default. No delinquency charge may be collected with respect
to a deferred installment unless the installment is not paid in full within ten days after its
deferred due date. A delinquency charge may be collected at the time it accrues or at any
time afterward.
3. A delinquency charge shall not be collected under subsection 1, paragraph “a”, on an
installment that is paid in full within ten days after its scheduled or deferred installment due
date even though an earlier maturing installment or a delinquency or deferral charge on an
earlier installment may not have been paid in full. For purposes of this subsection, payments
associated with a precomputed transaction are applied first to current installments and then
to delinquent installments.
4. With respect to open-end credit, the parties may contract for a delinquency charge on
any payment not paid in full when due, as originally scheduled or as deferred, in an amount
up to thirty dollars.
5. A delinquency charge under subsection 4 may be collected only once on a payment
however long it remains in default. A delinquency charge shall not be collected with respect
to a deferred payment unless the payment is not paid in full on or before its deferred due
date. A delinquency charge may be collected at the time it accrues or at any time afterward.
6. Adelinquencychargeshallnotbecollectedundersubsection4onapaymentassociated
with a precomputed transaction that is paid in full on or before its scheduled or deferred
due date even though an earlier maturing payment or a delinquency or deferred charge on
an earlier payment has not been paid in full. For purposes of this subsection, payments are
applied first to amounts due for the current billing cycle and then to delinquent payments.

Legislative History

[C66, 71, 73, §536.13(7), 536A.23(3); C75, 77, 79, 81, §537.2502]