§ 537.2502

537.2502 Delinquency charges. 1. With respect to a consumer credit transaction not pursuant to an open-end credit arrangement and other than a consumer lease or consumer rental purchase agreement, theparties may contract for a delinquency charge on any installment not paid in full within tendays after its due date, as originally scheduled or as deferred, in an amount as follows: a. For a precomputed transaction, an amount not exceeding the greater of either of the following: (1) Five percent of the unpaid amount of the installment, or a maximum of thirty dollars.(2) The deferral charge that would be permitted to defer the unpaid amount of the installment for the period that it is delinquent. b. For an interest-bearing transaction, an amount not exceeding five percent of the unpaid amount of the installment, or a maximum of thirty dollars. 2. A delinquency charge under subsection 1 may be collected only once on an installment however long it remains in default. No delinquency charge may be collected with respectto a deferred installment unless the installment is not paid in full within ten days after itsdeferred due date.

however long it remains in default. No delinquency charge may be collected with respectto a deferred installment unless the installment is not paid in full within ten days after itsdeferred due date. A delinquency charge may be collected at the time it accrues or at anytime afterward. 3. A delinquency charge shall not be collected under subsection 1, paragraph 'a', on an installment that is paid in full within ten days after its scheduled or deferred installment duedate even though an earlier maturing installment or a delinquency or deferral charge on anearlier installment may not have been paid in full. For purposes of this subsection, paymentsassociated with a precomputed transaction are applied first to current installments and thento delinquent installments. 4. With respect to open-end credit, the parties may contract for a delinquency charge on any payment not paid in full when due, as originally scheduled or as deferred, in an amountup to thirty dollars. 5. A delinquency charge under subsection 4 may be collected only once on a payment however long it remains in default. A delinquency charge shall not be collected with respectto a deferred payment unless the payment is not

under subsection 4 may be collected only once on a payment however long it remains in default. A delinquency charge shall not be collected with respectto a deferred payment unless the payment is not paid in full on or before its deferred duedate. A delinquency charge may be collected at the time it accrues or at any time afterward. 6. A delinquency charge shall not be collected under subsection 4 on a payment associated with a precomputed transaction that is paid in full on or before its scheduled or deferred duedate even though an earlier maturing payment or a delinquency or deferred charge on anearlier payment has not been paid in full. For purposes of this subsection, payments areapplied first to amounts due for the current billing cycle and then to delinquent payments. [C66, 71, 73, §536.13(7), 536A.23(3); C75, 77, 79, 81, §537.2502]89 Acts, ch 68, §4; 93 Acts, ch 124, §1; 95 Acts, ch 113, §1; 96 Acts, ch 1114, §3 – 5; 97 Acts, ch 187, §6, 7; 99 Acts, ch 15, §3; 2003 Acts, 1st Ex, ch 1, §125, 133 [2003 Acts, 1st Ex, ch 1, §125, 133, amendments to subsections 3 and 6 rescinded pursuant to Rants v.

, ch 1114, §3 – 5; 97 Acts, ch 187, §6, 7; 99 Acts, ch 15, §3; 2003 Acts, 1st Ex, ch 1, §125, 133 [2003 Acts, 1st Ex, ch 1, §125, 133, amendments to subsections 3 and 6 rescinded pursuant to Rants v. Vilsack, 684 N.W.2d 193] 2004 Acts, 1st Ex, ch 1001, §22, 23; 2017 Acts, ch 138, §16 – 18Referred to in §535.10, 537.2510 Sat Dec 23 01:40:05 2023 Iowa Code 2024, Section 537.2502 (20, 0)