Iowa Code 537.2403 – Finance charge for consumer loans secured by a motor vehicle
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Terms Used In Iowa Code 537.2403
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- year: means twelve consecutive months. See Iowa Code 4.1
537.2403 Finance charge for consumer loans secured by a motor vehicle.
1. A lender shall not contract for or receive a finance charge exceeding twenty-one percent
per year on the unpaid balance of the amount financed for a loan of money secured by a certificate of title to a motor vehicle used for personal, family, or household purpose except as authorized under chapter 536 or 536A. A consumer who is charged a finance charge in excess of the limitation in this section may seek any remedies available pursuant to this chapter for an excess charge.
2. It shall be a violation of this section and an unlawful practice under § 714.16 to attempt to avoid application of this section by structuring a loan of money secured by a certificate of title to a motor vehicle as a sale, sale and repurchase, sale and lease, pawn, rental purchase, lease, or other type of transaction with the intent to avoid application of this section or any other applicable provision of this chapter.
2007 Acts, ch 26, §3
Referred to in §537.2401, 537.2402
1. A lender shall not contract for or receive a finance charge exceeding twenty-one percent
per year on the unpaid balance of the amount financed for a loan of money secured by a certificate of title to a motor vehicle used for personal, family, or household purpose except as authorized under chapter 536 or 536A. A consumer who is charged a finance charge in excess of the limitation in this section may seek any remedies available pursuant to this chapter for an excess charge.
2. It shall be a violation of this section and an unlawful practice under § 714.16 to attempt to avoid application of this section by structuring a loan of money secured by a certificate of title to a motor vehicle as a sale, sale and repurchase, sale and lease, pawn, rental purchase, lease, or other type of transaction with the intent to avoid application of this section or any other applicable provision of this chapter.
2007 Acts, ch 26, §3
Referred to in §537.2401, 537.2402