What You Need to Know About Iowa Payday Loans?
In Iowa, all payday lenders - whether a storefront or online - must be licensed by the Iowa Division of Banking if they are going to do business in the state. Payday loan is not intended to meet long-term financial needs. This loan should be used only to meet short- term cash needs. Other Iowa payday loans informations you must know:
Maximum Loan Amount.
A consumer can borrow in a payday loan cannot exceed $500.
Rollovers Prohibited.
Rollover of a payday loan by any lender is prohibited.
A consumer may cancel future payment obligations on a payday loan, without cost or finance charges, no later than the end of the second business day immediately following the day on which the payday loan agreement was executed.
Loan Terms.
Without affecting the right of a consumer to prepay at any time without cost or penalty, a payday loan shall not have a minimum term of less than thirteen days.
What borrowers need to know?
- - A lender shall provide a consumer with a written loan agreement that may be kept by the consumer.
- - A payday loan is not intended to meet long-term financial needs. A payday loan should be used only to meet short-term cash needs. The cost of a payday loan may be higher than loans offered by other lending institutions. Payday loans are regulated by the Superintendent of Banking for the State of Iowa.
- - If you still owe on one or more payday loans after thirty-five days, you are entitled to enter into a repayment plan. The repayment plan will give you at least fifty-five days to repay your loan in installments with no additional finance charges, interest, fees, or other charges of any kind.
What the Lender Must Tell Borrowers?
- * Explains all of the consumer's rights and responsibilities in a payday loan transaction.
- * Includes a toll-free telephone number to the superintendent's office to handle concerns or provide information about whether a lender is licensed, whether complaints have been filed with the superintendent, and the resolution of those complaints.
- * Provides information regarding the availability of debt management services.
- * At the time a payday loan is made, the lender shall provide the consumer with a separate written notice signed by the consumer of the consumer's right to request a repayment plan.
What Lenders Cannot Do?
- * Threaten to use or use the criminal process in this or any other state to collect on a loan.
- * Use any device or agreement that would have the effect of charging or collecting more fees or charges, including, but not limited to, entering into a different type of transaction with the consumer.
- * Engage in unfair, deceptive, or fraudulent practices in the making or collecting of a payday loan.
- * Use or attempt to use a check provided by the consumer in a payday loan as collateral for a transaction not related to the payday loan.
- * Knowingly accept payday loan through the provided by any lender.
- * Charge any fees or charges other than those specifically authorized.
- * Threaten to take any action against a consumer that is prohibited by this chapter or make any misleading or deceptive statements regarding a payday loan or any consequences thereof.
- * Refuse, or intentionally delay or inhibit, a consumer's right to enter into a repayment plan pursuant.
- * Charge for, or attempt to collect, attorney fees, court costs, or arbitration costs incurred in connection with the collection of a payday loan.
Right To Cancel Future Payment Obligations.
A consumer may cancel future payment obligations on a payday loan, without cost or finance charges, no later than the end of the second business day immediately following the day on which the payday loan agreement was executed. To cancel future payment obligations on a payday loan, the consumer shall inform the lender in writing that the consumer wants to cancel the future payment obligations on the payday loan and shall return the uncashed proceeds, check or cash, in an amount equal to the principal amount of the loan.
Other Iowa Payday Loans Law.