A bill for an act relating to annual percentage rates for delayed deposit service transactions.(Formerly HF 627.)
Impact
The implementation of HF 878 would alter existing laws regarding consumer finance, placing a significant restriction on how much interest can be charged in delayed deposit transactions. This change aims to promote fairness and transparency in lending practices, potentially benefiting a large number of consumers by reducing the financial burdens associated with high-interest loans. The bill's stipulation that transactions exceeding this rate become void reinforces the seriousness of the regulation, emphasizing the importance of compliance among lenders.
Summary
House File 878 is a legislative proposal aimed at regulating the annual percentage rates (APRs) applicable to delayed deposit service transactions within the state of Iowa. The bill specifically prohibits any licensee from imposing rates exceeding 36 percent on such transactions. By establishing this cap, the bill aims to protect consumers from excessively high interests that could arise from these types of financial services, which are often used by individuals facing short-term financial difficulties.
Contention
While HF 878 seems to aim at consumer protection, the bill may also face contention from financial institutions that offer delayed deposit services, as they could argue that the imposed rate limit restricts their ability to operate viably. Opponents may raise concerns about the availability of such services, which could diminish if providers find it unprofitable to operate under the new cap. Moreover, the provision that protects individuals on active military duty—regulating their APRs to comply with federal guidelines—could provoke discussions regarding how to fairly implement protections for varying demographic groups within the state.
A bill for an act relating to delayed deposit services by limiting the annual percentage rate for fees and requiring a delayed deposit repayment option in certain circumstances, and making penalties applicable.
Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
A bill for an act relating to the disposition of firearms and ammunition deposited with the department of public safety through seizure or forfeiture proceedings.(Formerly HF 519.)
A bill for an act relating to interest rates and charges on regulated loans, and consumer credit transaction service charges. (Formerly HSB 524.) Effective date: 07/01/2026.