§ 537.2504 — Finance charge on refinancing

Iowa § 537.2504

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

Text

Withrespecttoaconsumercredittransactioninwhichtherateoffinancechargerequiredto
bedisclosedinthetransactionpursuanttosection537.3201doesnotexceedeighteenpercent
per year, other than a consumer lease or a consumer rental purchase agreement, the creditor
may, by agreement with the consumer, refinance the unpaid balance and may contract for
and receive a finance charge based on the amount financed resulting from the refinancing at
a rate not exceeding that permitted by the provisions on finance charge for consumer credit
sales other than open-end credit in section 537.2201 if a consumer credit sale is refinanced,
the provisions on finance charge for a consumer loan other than a supervised loan in section
537.2401, subsection1, ortheprovisionsonfinancechargeforasupervisedloannotpursuant
to open-end credit in section 537.2401, subsection 2, as applicable, if a consumer loan is
refinanced. With respect to a consumer credit transaction in which the rate of finance charge
required to be disclosed in the transaction to the consumer pursuant to section 537.3201
exceedseighteenpercentperyear,otherthanaconsumerleaseoraconsumerrentalpurchase
agreement, the creditor may by agreement with the consumer, refinance the unpaid balance
and may contract for and receive a finance charge based on the amount financed resulting

from the refinancing at a rate of finance charge not to exceed that which was required to be
disclosed in the original transaction to the consumer pursuant to section 537.3201. For the
purpose of determining the finance charge permitted, the amount financed resulting from the
refinancing consists of:
1. If the transaction was not precomputed, the total of the unpaid balance of the amount
financed and the accrued charges, including finance charges, on the date of the refinancing,
or, if the transaction was precomputed, the amount determined by deducting the unearned
portion of the finance charge and any other unearned charges, including charges for
insurance or deferral charges, from the unpaid balance on the date of refinancing. For the
purposes of this section, the unearned portion of the finance charge and deferral charge, if
any, shall be determined as provided in section 537.2510, subsection 2, but without allowing
any minimum charge.
2. Appropriate additional charges as permitted under section 537.2501, payment of which
is deferred.

Legislative History

[C75, 77, 79, 81, §537.2504]