533A.9 Fee agreed in advance. 1. The fee of a licensee charged to a debtor shall be agreed upon in advance and stated in the contract and provision for settlement in case of cancellation shall also be clearly statedin the contract. 2. A debtor may be charged a one-time initiation fee for debt management services, which shall not exceed fifty dollars. 3. If a debt management program is based on a model that required the licensee or any other licensee to receive money or evidences thereof from the debtor to distribute to thedebtor’s creditors, the debtor may not be charged a fee exceeding the initiation fee permittedin subsection 2 plus a fee not to exceed fifteen percent of amounts actually applied to thedebtor’s accounts with the creditors. Other than the initiation fee, the debtor shall at no timebe required to pay fees exceeding fifteen percent of amounts actually applied to the debtor’saccounts with the creditors. 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 thedebtor’s creditors, a debtor may not be charged a fee exceeding the sum of the following: es the licensee or another licensee to receive money or evidences thereof from the debtor to distribute to thedebtor’s creditors, a debtor may not be charged a fee exceeding the sum of the following: a. The initiation fee permitted in subsection 2.b. An additional fee not to exceed eighteen percent of the total amount of the debtor’s debts enrolled in the licensee’s program at the time the debtor enrolled in the program. Theadditional fee shall not be collected pursuant to a method other than the percent of totaldebt method or the percent of savings method, as provided in subparagraphs (1) and (2),respectively. (1) The percent of total debt method involves the additional fee being collected in equal monthly installments payable over the first two-thirds of the term of the contract betweenthe debtor and the licensee. The debtor may elect to discontinue participation at any timeduring the program by providing written notice to the licensee at the address specified in thecontract. Notice of discontinuance, if given by mail, is effective when deposited in the mailproperly addressed with postage paid. viding written notice to the licensee at the address specified in thecontract. Notice of discontinuance, if given by mail, is effective when deposited in the mailproperly addressed with postage paid. If the debtor discontinues participation in the program,no future installments are due after the mailing of the notice. If participation is discontinuedwithin the first twelve months of the contract, the licensee may retain only fifty percent of theinstallments it is scheduled to receive through the date the debtor gives the discontinuationnotice and shall refund the excess to the debtor. Notwithstanding the foregoing, the licenseemay collect a pro rata portion of the total fee upon completion of a settlement of a debtor’sdebt. The pro rata portion shall be calculated by multiplying the total dollar amount of thecontracted additional fee by the percentage of debt settled of the original amount of debtenrolled in the program. In no event shall the additional fee exceed eighteen percent of thetotal amount of the debtor’s debts enrolled in the licensee’s program at the time the debtorenrolled in the program. in the program. In no event shall the additional fee exceed eighteen percent of thetotal amount of the debtor’s debts enrolled in the licensee’s program at the time the debtorenrolled in the program. (2) The percent of savings method involves the additional fee being collected in monthly installments of fifty dollars per month, and the monthly fees collected shall be creditedagainst any fees the licensee earns as the result of settlements. The debtor may elect todiscontinue participation at any time during the program by providing written notice to thelicensee at the address specified in the contract. Notice of discontinuance, if given by mail,is effective when deposited in the mail properly addressed with postage paid. If the debtordiscontinues participation in the program, no future installments are due after the mailing ofthe notice. If participation is discontinued within the first twelve months of the contract, thelicensee may retain only fifty percent of the installments it is scheduled to receive throughthe date the debtor gives the discontinuation notice and shall refund the excess to the debtor.Notwithstanding the foregoing, the licensee may collect a pro rata portion of cheduled to receive throughthe date the debtor gives the discontinuation notice and shall refund the excess to the debtor.Notwithstanding the foregoing, the licensee may collect a pro rata portion of the total feeupon completion of a settlement of a debtor’s debt. The pro rata portion, which may becollected at the time of settlement, shall be calculated by multiplying the contracted savingspercentage, not to exceed thirty percent, by the amount saved on settled debt. The amountsaved on settled debt is the difference between the balance of that debt upon enrollment inthe program and the amount settled. In no event shall the additional fee exceed eighteen Sat Dec 23 01:36:32 2023 Iowa Code 2024, Section 533A.9 (17, 0) §533A.9, DEBT MANAGEMENT 2 percent of the total amount of the debtor’s debts enrolled in the licensee’s program at thetime the debtor enrolled in the program. 5. Any services provided by a third party, other than the debtor’s own banking fees, including lead generating, marketing, and selling services, shall be paid for by the licensee.Under no circumstances shall a debtor be required to pay a fee to a third party to obtain alicensee’s services. ing lead generating, marketing, and selling services, shall be paid for by the licensee.Under no circumstances shall a debtor be required to pay a fee to a third party to obtain alicensee’s services. [C71, 73, 75, 77, 79, 81, §533A.9]90 Acts, ch 1100, §1; 2006 Acts, ch 1042, §7; 2009 Acts, ch 34, §6Referred to in §533A.8 Sat Dec 23 01:36:32 2023 Iowa Code 2024, Section 533A.9 (17, 0)
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