§ 537.2504

537.2504 Finance charge on refinancing. With respect to a consumer credit transaction in which the rate of finance charge required to be disclosed in the transaction pursuant to section 537.3201 does not exceed eighteen percentper year, other than a consumer lease or a consumer rental purchase agreement, the creditormay, by agreement with the consumer, refinance the unpaid balance and may contract forand receive a finance charge based on the amount financed resulting from the refinancing ata rate not exceeding that permitted by the provisions on finance charge for consumer creditsales other than open-end credit in section 537.2201 if a consumer credit sale is refinanced,the provisions on finance charge for a consumer loan other than a supervised loan in section537.2401, subsection 1, or the provisions on finance charge for a supervised loan not pursuantto open-end credit in section 537.2401, subsection 2, as applicable, if a consumer loan isrefinanced. With respect to a consumer credit transaction in which the rate of finance chargerequired to be disclosed in the transaction to the consumer pursuant to section 537.3201exceeds eighteen percent per year, other than a consumer lease

t transaction in which the rate of finance chargerequired to be disclosed in the transaction to the consumer pursuant to section 537.3201exceeds eighteen percent per year, other than a consumer lease or a consumer rental purchaseagreement, the creditor may by agreement with the consumer, refinance the unpaid balanceand may contract for and receive a finance charge based on the amount financed resultingfrom the refinancing at a rate of finance charge not to exceed that which was required to bedisclosed in the original transaction to the consumer pursuant to section 537.3201. For thepurpose of determining the finance charge permitted, the amount financed resulting from therefinancing consists of: 1. If the transaction was not precomputed, the total of the unpaid balance of the amount financed and the accrued charges, including finance charges, on the date of the refinancing,or, if the transaction was precomputed, the amount determined by deducting the unearnedportion of the finance charge and any other unearned charges, including charges forinsurance or deferral charges, from the unpaid balance on the date of refinancing.

termined by deducting the unearnedportion of the finance charge and any other unearned charges, including charges forinsurance or deferral charges, from the unpaid balance on the date of refinancing. For thepurposes of this section, the unearned portion of the finance charge and deferral charge, ifany, shall be determined as provided in section 537.2510, subsection 2, but without allowingany minimum charge. 2. Appropriate additional charges as permitted under section 537.2501, payment of which is deferred. [C75, 77, 79, 81, §537.2504]87 Acts, ch 80, §35; 2018 Acts, ch 1041, §127Referred to in §537.2505, 537.2508, 537.3308 Sat Dec 23 01:40:07 2023 Iowa Code 2024, Section 537.2504 (20, 0)