1. The administrator may bring a civil action to restrain a person to whom this part applies from engaging in any of the following courses of action:

 a. Making or enforcing unconscionable terms or provisions of consumer credit transactions.
 b. Fraudulent or unconscionable conduct in inducing consumers to enter into consumer credit transactions.
 c. Conduct of any of the types specified in paragraph “a” or “b” with respect to transactions that give rise to or that lead persons to believe they will give rise to consumer credit transactions.
 d. Fraudulent or unconscionable conduct in the collection of debts arising from consumer credit transactions or from transactions which would have been consumer credit transactions if a finance charge was made or the obligation was payable in installments.

Terms Used In Iowa Code 537.6111

  • Administrator: means the administrator designated in section 537. See Iowa Code 537.1301
  • Consumer: means the buyer, lessee, or debtor to whom credit is granted in a consumer credit transaction. See Iowa Code 537.1301
  • Consumer credit transaction: means a consumer credit sale or consumer loan, or a refinancing or consolidation thereof, or a consumer lease, or a consumer rental purchase agreement. See Iowa Code 537.1301
  • Credit: means the right granted by a person extending credit to a person to defer payment of debt, to incur debt and defer its payment, or to purchase property or services and defer payment therefor. See Iowa Code 537.1301
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Payable in installments: means that payment is required or permitted by agreement to be made in more than four periodic payments, excluding a down payment. See Iowa Code 537.1301
  • Person: means :
     a. See Iowa Code 537.1301
  • Transaction: means a sale, trade, exchange, transfer, payment, or conversion of a digital asset or any other property or any other action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. See Iowa Code 554E.1
 2. In an action brought pursuant to this section the court may grant relief only if it finds all of the following:

 a. That the defendant has made unconscionable agreements or has engaged in or is likely to engage in a course of fraudulent or unconscionable conduct.
 b. That the defendant’s agreements have caused or are likely to cause, or the conduct of the defendant has caused or is likely to cause, injury to consumers or debtors.
 c. That the defendant has been able to cause or will be able to cause the injury primarily because the transactions involved are credit transactions.
 3. In applying subsection 1, paragraph “a”, “b”, or “c”, consideration shall be given to the factors specified in the provisions on unconscionability with respect to a transaction that is or gives rise to or that a person leads the debtor to believe will give rise to a consumer credit transaction, as provided in section 537.5108, subsection 3, among others.
 4. In applying subsection 1, paragraph “d”, violations of section 537.7103 shall be considered, among other factors, as applicable.
 5. In an action brought pursuant to this section, a charge or practice expressly permitted by this chapter is not in itself unconscionable.
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