§ 533a-8a

533A.8A Educational loan debt management services — contract requirements — prohibitions — remedies. 1. In addition to any other requirements applicable to a licensee pursuant to this chapter, a licensee who is engaged primarily in the business of debt management in connection witheducational loans, as described in section 533A.1, subsection 2, paragraph 'e', shall do soin accordance with this section. The provisions of this section are not exclusive and do notrelieve persons or a contract from compliance with other applicable law. 2. A licensee shall not receive any compensation for providing educational loan debt management services until after the licensee has fully performed all services that the licenseecontracted to perform or represented the licensee would perform, and shall not request anypayment from the debtor or require the debtor to provide payment to any third party priorto fully performing all services. 3. a. A debtor has an unconditional right to cancel a contract with a licensee for educational loan debt management services at any time prior to midnight of the third businessday following the date a contract which complies with this section is signed and executed.

a licensee for educational loan debt management services at any time prior to midnight of the third businessday following the date a contract which complies with this section is signed and executed. b. Cancellation of a contract occurs when the debtor delivers, by any means, written notice of cancellation to the address specified in the contract. Notice of cancellation, if deliveredby mail, is effective when deposited in the mail properly addressed with postage prepaid.Notice of cancellation delivered by electronic mail is effective upon transmission. Noticeof cancellation delivered personally is effective upon delivery. Notice of cancellation givenby the debtor need not take the particular form as provided in the contract and, howeverexpressed, is effective if the notice of cancellation indicates the intention of the debtor not tobe bound by the contract. 4. A contract to provide debt management services in connection with an educational loan shall be written in clear, understandable language, shall clearly and conspicuously set forthany and all terms, restrictions, and conditions governing the contract, and shall describe fullyand in detail all services that the licensee

andable language, shall clearly and conspicuously set forthany and all terms, restrictions, and conditions governing the contract, and shall describe fullyand in detail all services that the licensee contracts to perform for the debtor. The contractshall be dated and signed by the debtor. The contract shall set forth information required inthis section in at least ten point type. The following shall be included in the contract: a. The licensee’s name, the licensee’s electronic mail address, and the physical address of the licensee’s place of business to which the notice of cancellation is to be mailed or otherwisedelivered. A post office box does not constitute a physical address. A post office box may bedesignated for delivery by mail only if it is accompanied by a physical address at which thenotice could be delivered by a method other than mail. b. A disclosure statement in substantially the following form shall appear in at least fourteen point boldface type immediately above the place where the debtor is to sign: You, the debtor, may cancel this contract at any time prior to midnight of the third business day after the contract is signedand executed.

pe immediately above the place where the debtor is to sign: You, the debtor, may cancel this contract at any time prior to midnight of the third business day after the contract is signedand executed. See the attached notice of cancellation form for anexplanation of this right. c. A completed, easily detachable form in duplicate, captioned 'notice of cancellation', as an attachment, in at least fourteen point boldface type, containing the following statement insubstantially the following form and language: NOTICE OF CANCELLATION ........(date contract is signed and executed) You, the debtor, may cancel this contract without any penalty or obligation, within three business days from the above date. To cancel this contract, you may use any of the following methods: (1) send by postal mail or otherwise deliver a signed anddated copy of this cancellation notice, or any other written notice ofcancellation, to (physical address of licensee’s place of business);or (2) send by electronic mail a notice of cancellation to (licensee’selectronic mail address). Sat Dec 23 01:36:35 2023 Iowa Code 2024, Section 533A.8A (4, 0) §533A.8A, DEBT MANAGEMENT 2 No later than midnight of (date).I hereby

a notice of cancellation to (licensee’selectronic mail address). Sat Dec 23 01:36:35 2023 Iowa Code 2024, Section 533A.8A (4, 0) §533A.8A, DEBT MANAGEMENT 2 No later than midnight of (date).I hereby cancel this contract. ......(date)............(debtor’s signature) d. A disclosure statement in substantially the following form shall appear in at least fourteen point boldface type immediately above the 'Notice of Cancellation' form describedin paragraph 'c': NOTICE REQUIRED BY IOWA LAW (Insert name of licensee) or anyone working for (insert name of licensee) CANNOT take payment directly from you or require youto pay for or finance its services through a third party until (insertname of licensee) has fully performed each and every service that(insert name of licensee) contracted to perform or represented that(insert name of licensee) would perform. 5. A licensee who is engaged primarily in the business of debt management in connection with educational loans shall not do any of the following: a. Claim, demand, charge, collect, or receive compensation until after the licensee has fully performed each and every service the licensee contracted to perform or represented thelicensee would

ing: a. Claim, demand, charge, collect, or receive compensation until after the licensee has fully performed each and every service the licensee contracted to perform or represented thelicensee would perform. b. Execute a contract with a debtor for educational loan debt management services in violation of this section. c. Receive consideration from any third party in connection with services rendered to a debtor unless the consideration is first fully disclosed to the debtor. d. Prohibit or impede a debtor from contacting any creditor, lender, loan servicer, government entity, attorney, counselor, individual, or company that may seek to help thedebtor. Any such provision is void and unenforceable. e. Access or obtain a debtor’s federal student aid information in violation of federal law.f. Compensate employees, including independent contractors, based on the number of debtors recruited by the employees or enrolled in particular programs, or providecompensation to employees on any other commission-based system. g. Pay or offer to pay any compensation, bonus, gift, commission, or other consideration to any person for the referral of a debtor to the licensee’s business. h.

n any other commission-based system. g. Pay or offer to pay any compensation, bonus, gift, commission, or other consideration to any person for the referral of a debtor to the licensee’s business. h. Accept or receive any compensation, bonus, gift, commission, or other consideration for service to the debtor from any person other than the debtor, the debtor’s representative,or any third party providing financing that is otherwise in compliance with the requirementsof this section. i. Disclose any information regarding a debtor to anyone other than law enforcement, government entities, loan servicers, creditors of the debtor, or as required by law. j. Disclose any information regarding the creditor of a debtor to anyone other than the debtor, the debtor’s representative, or as required by law. 6. a. A violation of this section is an unlawful practice pursuant to section 714.16, and all remedies of section 714.16 are available for such an action. A private cause of action broughtunder this section by a debtor is in the public interest. A debtor may bring an action against alicensee for a violation of this section.

vailable for such an action. A private cause of action broughtunder this section by a debtor is in the public interest. A debtor may bring an action against alicensee for a violation of this section. If the court finds that the licensee violated this section,the court shall award the debtor actual damages, appropriate equitable relief, and the costsof the action, and shall award reasonable fees to the debtor’s attorney. b. The rights and remedies provided in paragraph 'a' are cumulative to, and not a limitation of, any other rights and remedies provided by law. Any action brought by aperson other than the attorney general or the superintendent pursuant to this section mustbe commenced within four years from the date of the alleged violation. c. Notwithstanding any other provision of this section, an action shall not be brought on the basis of a violation of this section, except by a debtor against whom the violation was Sat Dec 23 01:36:35 2023 Iowa Code 2024, Section 533A.8A (4, 0) committed or by the attorney general or superintendent. This limitation does not apply toadministrative action by either the attorney general or the superintendent.

Code 2024, Section 533A.8A (4, 0) committed or by the attorney general or superintendent. This limitation does not apply toadministrative action by either the attorney general or the superintendent. 2020 Acts, ch 1067, §3 Sat Dec 23 01:36:35 2023 Iowa Code 2024, Section 533A.8A (4, 0)