IowaText sets loan rate maximum and consumer credit service charge limit
The text states a monthly rate maximum for regulated loans and limits service charges on consumer credit transactions.
What it does
For regulated loans, the text states a maximum interest or charge rate of 3% per month. Loans above $10,000 are also subject to rates set under subsection 7.
For a consumer credit transaction, the service charge cannot exceed the lower of 3% of the amount financed or $100.
Argument forThe stated 3% monthly maximum and the service charge limit could help borrowers understand the highest charges allowed for these transactions.
Argument againstA monthly cap of 3% could still allow substantial charges to build up for people who carry a regulated loan balance.
More detail
The law sets a maximum monthly rate of 3% for regulated loans. The maximum applies to interest or charges on regulated loans. For loan amounts above $10,000, the text also refers to rates set under subsection 7.
The law sets a service charge limit for consumer credit transactions. This limit applies to service charges for consumer credit transactions. The charge cannot exceed whichever is lower: 3% of the amount financed or $100.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 2Signed by Governor Kim Reynolds.Became Law
- May 2Reported correctly enrolled, signed by Speaker and President, and sent to Governor.To Governor
- Apr 7Message from Senate.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Apr 7Immediate message.
- Apr 7Passed Senate, yeas 34, nays 11.Passed 2nd Chamber
- Apr 7Substituted for SF 2216.
- Mar 19Placed on calendar under unfinished business.
- Mar 16Read first time, attached to SF 2216.Minor
- Mar 16Message from House.
- Mar 12Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Vote recorded Shall the rules be suspended to consider amendment H-8199? Result: fail.Lower
- Mar 12Passed House, yeas 62, nays 29.Passed 1st Chamber
- Mar 12Amendment H-8196 adopted.Major
- Mar 12Motion to suspend rules failed.
- Mar 12Motion to suspend rules for immediate consideration of amendment H-8199, yeas 28, nays 63.
- Mar 12Point of order raised on amendment H-8199, ruled not germane.
- Mar 11Amendment H-8199 filed.Minor
- Mar 10Amendment H-8196 filed.Minor
- Feb 6Introduced, placed on calendar.Introduced
Consumer Protection