House File 2326 -S-5214 ReprintedAmend HOUSEHouse FILEFile 23262326, BYas COMMITTEEamended, ONpassed, COMMERCE (SUCCESSOR TO HSB 603) (As Amended and Passedreprinted by the HouseHouse, Aprilas 1,follows: 2026) A BILL FOR An Act relating to debt management programs, services, fees, and licensee requirements.

BE1. IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

HFPage 23261, (2)by 91striking nls/ko/mdline H.F.35 and inserting <that debt, or from collecting the fee authorized under section 533A.9, subsection 4, paragraph “c”, subsection (1), subparagraph division (b), if the debtor subsequently completes the payment terms required under the debt settlement agreement.> 2.

2326Page Section2, 1.line 18, after <c.> by inserting <(1)> 3.

SectionPage 533A.8,2, subsectionby 5,striking paragraphlines a,25 Codethrough 2026,31 isand amendedinserting <amount, not to readexceed asthe follows:following:> 4.

a.Page 2, before line 32 by inserting:

Maintain<(a) aTwenty separatepercent bankof trustthe accounttotal oramount dedicatedof accountdebt inenrolled whichby allthe paymentsdebtor receivedat from debtors for the benefittime of creditorsenrollment shallin bethe depositeddebt andmanagement inprogram, which allthe paymentslicensee shallmay remaincollect untilafter athe remittancedebtor ishas madesatisfied to either the debtorrequirements orof thethis creditor.subsection.

Sec.(b) Thirty percent of the difference between the principal amount of the debt the debtor owed to a creditor at the time the debtor signed the agreement under paragraph “a”, and the amount the debtor paid the creditor to settle the debt not including any fee the debtor paid to the licensee under this section, which the licensee may collect upon settlement of a debt.

2.(2) The individual debt amount and the entire debt amount are those owed at the time the debt was enrolled in the debt management program.

SectionThe 533A.8,percent subsectioncharged 5,is paragraphthe d,same Codefor 2026,each isindividual amendeddebt byenrolled strikingin the paragraph.debt management program.> 5.

Sec.Page 3, by striking lines 3 through 5 and inserting <licensee to a debtor shall not exceed the amounts specified in subsections 3 and 4.> 6.

3.Page 3, by striking lines 10 through 18.

Section 533A.8, subsection 6, Code 2026, is amended to read as follows:

6.

If the debt management program is not based on a model which requires the licensee or any licensee to receive money or evidences thereof from the debtor to distribute to the debtor’s creditors, both of the following shall apply:

a.

The the debtor shall maintain full control of and access to any moneys set aside for payment to creditors.

b.

The licensee may not receive consideration from any third party in connection with services rendered to a debtor.

Sec.

4.

Section 533A.8, Code 2026, is amended by adding the following new subsection:

NEW SUBSECTION .

10A.

If a debtor who has contracted with a licensee to settle a debt has executed a debt settlement agreement with a creditor to settle such debt and has made at least one payment pursuant to that agreement, and the debtor subsequently fails to complete the payment terms required under that debt settlement agreement, the licensee shall attempt to renegotiate, resolve, reduce, or otherwise alter the terms of the debt with the creditor and shall not request or receive an additional fee from the debtor for any additional debt management service provided by the licensee for that debt.

This subsection does not prohibit a licensee from requesting or receiving payment of any outstanding balance of the fee required by the contract between the licensee and debtor for that debt.

HF 2326 (2) 91 -1- nls/ko/md 1/3 H.F.

2326 Sec.

5.

Section 533A.9, subsection 4, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:

4.

If a debt management program is not based on a model that requires the licensee or another licensee to receive money or evidences thereof from the debtor to distribute to the debtor’s creditors, a licensee may not request or receive payment of any fee or consideration for debt management services provided under a debt management program unless all of the following are true:

a.

The licensee has renegotiated, resolved, reduced, or otherwise altered the terms of at least one debt pursuant to a resolution agreement or other contractual agreement executed by the debtor and the creditor.

b.

The debtor has made at least one payment pursuant to the resolution agreement or other contractual agreement entered into under paragraph “a”.

c.

To the extent that debts enrolled in the debt management program are renegotiated, resolved, reduced, or otherwise altered individually, the fee or consideration for the debt management service bears the same proportional relationship to the total fee or consideration for renegotiating, resolving, reducing, or otherwise altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount, not to exceed thirty percent of the total amount of debt enrolled by the debtor at the time of enrollment in the debt management program.

The individual debt amount and the entire debt amount are those owed at the time the debt was enrolled in the debt management program.

The percent charged is the same for each individual debt enrolled in the debt management program.