§ 537.2301

537.2301 Authority to make supervised loans. 1. As used in this part, 'licensing authority' means the agency designated in chapter 524, 533, 536, or 536A to issue licenses or otherwise authorize the conduct of business pursuant tothe respective chapter or this chapter, and 'licensee' includes any person subject to regulationby a licensing authority. 'License' includes the authorization, of whatever form, to engage inthe conduct regulated under those chapters. 2. A person who is not authorized to make supervised loans as provided in this section shall not engage in the business of making supervised loans or undertaking direct collectionof payments from or enforcement of rights against consumers arising from supervised loans,but the person may collect and enforce for three months without a license if the personpromptly applies for a license and the person’s application has not been denied. 3. A supervised loan made by a person in violation of subsection 2 shall be void and the consumer is not obligated to pay either the amount financed or the finance charge. If theconsumer has paid any part of the amount financed or the finance charge, the consumerhas a right to recover the payment

is not obligated to pay either the amount financed or the finance charge. If theconsumer has paid any part of the amount financed or the finance charge, the consumerhas a right to recover the payment from the person in violation of subsection 2 or from anassignee of that person’s rights who undertakes direct collection of payments or enforcementof rights arising from the debt. With respect to violations arising from loans made pursuant toopen-end credit, no action pursuant to this subsection may be brought more than two yearsafter the violation occurred. With respect to violations arising from other loans, no actionpursuant to this subsection may be brought more than one year after the due date of the lastscheduled payment of the agreement pursuant to which the charge was paid. 4. The following persons are authorized to make supervised loans:a. A person who is a supervised financial organization.b. A person who has obtained a license pursuant to either chapter 536 or 536A.c. A person who enters into less than ten supervised loans per year in this state and has neither an office physically located in this state nor engages in face-to-face solicitation in thisstate. 5.

.c. A person who enters into less than ten supervised loans per year in this state and has neither an office physically located in this state nor engages in face-to-face solicitation in thisstate. 5. This section shall not affect dollar amount, purpose, or rate of finance charge restrictions imposed by any statute of this state or of the United States with respect to whicha person is authorized to make loans at a rate of finance charge in excess of that permittedby chapter 535 or pursuant to which a person is licensed. [C75, 77, 79, 81, §537.2301]2012 Acts, ch 1017, §144; 2017 Acts, ch 138, §12; 2019 Acts, ch 59, §192Referred to in §536.1, 536A.3, 536A.27, 537.1201, 537.2310, 537.5201, 537.5301 Sat Dec 23 01:39:57 2023 Iowa Code 2024, Section 537.2301 (27, 0)