HF 2039 — A bill for an act relating to delayed deposit services by limiting the annual percentage rate for fees and requiring a delayed deposit repayment option in certain circumstances, and making penalties applicable.

Bill Text

• Introduced View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill limits the annual percentage rate for delayed deposit services to 10% and requires extended repayment plans for certain borrowers.

• Section 533D.9, subsection 2, paragraph b

  The annual percentage rate shall not exceed ten percent. → The annual percentage rate shall not exceed ten percent.

  This clarifies the maximum interest rate that can be charged.

• Section 533D.9, subsection 2

  e. That a maker obtaining more than four delayed deposit service loans from one licensee in a two-month period shall have the option to enter into an extended repayment plan agreement with the licensee pursuant to section 533D.9A upon the maker’s request and prior to the date the last check accepted by the licensee is to be negotiable.

  This provides a new right for borrowers to request extended repayment plans after taking out multiple loans.

• Section 533D.9A

  Any maker obtaining more than four delayed deposit service loans from one licensee in a two-month period may enter into an extended repayment plan agreement with the licensee if the maker requests to enter into such agreement prior to the date upon which the last check accepted by the licensee is to be negotiable.

  This establishes the conditions under which borrowers can enter into extended repayment plans.

• Section 533D.9A

  Except as provided in this section, the licensee shall not initiate debt collection, as defined in section 537.7102, civil court proceedings, or arbitration to collect on any unpaid checks during the term of the extended repayment plan agreement.

  This protects borrowers from debt collection actions while in an extended repayment plan.

• Section 533D.9A

  A licensee is required to enter into only one extended repayment plan agreement with a maker in a twelve-month period, measured from the commencement date of the first extended repayment plan agreement until the commencement date of the second extended repayment plan agreement.

  This limits the frequency of extended repayment plans a borrower can use.

• Section 533D.9A

  The maker shall be allowed to pay the total unpaid check obligations to be charged in at least four substantially equal installments due on dates or soon after dates when the maker will receive regular income, or on dates as mutually agreed upon by the maker and the licensee.

  This specifies the payment structure for the extended repayment plan.

• Section 533D.9A

  During the duration of the extended repayment plan agreement, the obligations the maker owes on any unpaid checks are not delinquent and the licensee shall not charge a penalty pursuant to section 533D.9, subsection 2.

  This ensures that payments under the extended repayment plan are not treated as delinquent.

• Section 533D.9A

  Upon the maker’s failure to make a scheduled payment pursuant to the extended repayment plan agreement, the licensee may charge a penalty pursuant to section 533D.9, subsection 2, and may initiate debt collection as defined in section 537.7102, civil court proceedings, or arbitration to collect on any unpaid checks.

  This allows penalties to be imposed if borrowers fail to adhere to the terms of the extended repayment plan.

Action History

1. January 14, 2026

   Introduced, referred to Commerce.

Sponsors

• Larry McBurney · Primary

Subjects