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Overview

All creditors who engage in consumer credit transactions are subject to the Iowa Consumer Credit
Code (ICCC), and all assignees that purchase those transactions must file notification with the
ICCC Administrator and pay all required fees. The Iowa Attorney General serves as the ICCC
administrator.

The ICCC requires all creditors and assignees to pay an annual notification fee. 
Creditors/assignees who own the paper for consumer credit transactions must also pay a volume
fee based on the average unpaid balance of all consumer credit transactions. The purpose of
assessing these fees is to ensure that all creditors and assignees contribute to the cost of enforcing
the ICCC, and the law stipulates that all fee money collected be put to that use.

Creditors and assignees who fail to file notification with the Iowa Attorney General and pay the
appropriate fees may be subject to late fees of $25.00, as well as a possible civil action in which the
administrator may sue to recover interest on the unpaid fees, the costs of the action, and a penalty
as high as $1,000 or three times the fees owed, whichever is greater.

 

Who needs to file?


The ICCC’s notification and fee requirements apply to all consumer credit transactions with
Iowa residents.

  1. Companies that enter into consumer credit transactions. 
    Examples of consumer credit transactions include:

 

·         Consumer loans

    • Retail installment sales contracts
    • Leases
    • Rent-to-own

Other credit programs with Iowa consumers are subject to these requirements, as are
retail stores that run their own credit card programs (i.e., offer a credit card in the
store’s name).

 

Layaway plans are generally not considered consumer credit transactions and are not
subject to the notification and fees requirements.

 

Learn more about consumer loans.

  1. Assignees that purchase/take assignment of the following:

 

·         Consumer loans

    • Consumer credit sales contracts
    • Consumer Leases


If an assignee does not pay its portion of the fees the original creditors remain
responsible for them.

 

  1. New and used car dealerships engaged in consumer credit sales

 

·         New and used car dealers must file notification and pay the annual notification fee
even if they assign all of their retail installment contracts.

·         Dealers who keep any consumer credit sales on their books must also pay a
volume fee.

 

·         Dealers who offer “Buy Here, Pay Here” must pay the volume fee in addition to
filing notification and paying the annual fee.

 

Who is exempt?

Iowa Code exempts banks, savings and loan associations, credit unions, and regulated loan
companies (finance companies) from these requirements. These entities are exempt because
they already contribute to enforcing the ICCC by paying examination fees to the
Iowa Department of Commerce.

 

Creditors are encouraged to consult with private counsel, as necessary, to determine their
obligations under these laws.


Calculating Fees

All creditors and assignees required to file notification with the Office of the Iowa
Attorney General and must pay an annual fee of $10.00.  Creditors/assignees who own the
paper for consumer credit transactions also must pay a volume fee based on the average
unpaid balance of all consumer credit transactions.

To determine the fee owed, a creditor should first calculate the average unpaid balance arising
from all consumer credit transactions held on the last day of each calendar month over the
preceding calendar year. The rate of the volume fee is $10.00 for each $100,000 of the average
monthly amount, and $10.00 for every additional portion of the average monthly amount that is
greater than $10,000 but less than $100,000.

For example, a creditor whose average monthly unpaid balance over the preceding year was
$105,000 would owe a volume fee of $10.00, while a creditor whose average monthly unpaid
balance was $130,000 would owe $20.00.  Please see Table 1 below for more examples.
The administrative rule provides additional information on how to calculate these fees.

Table 1: Examples of Volume Fee Rates

 

Average Monthly Unpaid Balance

Volume Fee Owed

$1 - $109,999

$10.00

$110,000 - $209,999

$20.00

$210,000 - $309,999

$30.00

$310,000 - $409,999

$40.00

$410,000 +

$10.00 per $100k owed

 


How to File

 

Creditors and assignees required to file notification with the Iowa Attorney General must
do so within 30 days of commencing collection activities in Iowa, and then by January 31
of every subsequent year.

 

Checks should be made payable to “Iowa Consumer Credit Administration Fund” and
sent, along with a completed Creditor/Assignee Notification Form* to:

Iowa Attorney General
Consumer Protection Division
Attn: Notification & Fees Administrator
1305 E. Walnut St.
Des Moines, IA 50319

*Additional documents are not required.

 

After You File

Creditors/assignees who have filed notification with the Iowa Attorney General will not
receive a confirmation, notice or hard copy license.  Filers with rejected notifications will
be notified by our staff.  Approved notifications will be processed and can be viewed
online at http://www.state.ia.us/government/ag/images/pdfs/Contacts_ICCC_Notification_Fe_2014.pdf approximately 15 business days after their receipt.

It is important that creditors/assignees notify the Iowa Attorney General in writing of any
changes in their company’s contact information to ensure all communications from the
Iowa Attorney General, including notification filing reminders, are received in a
timely manner. 

Changes should be submitted in writing and include the name of the company, the
previous, incorrect information and the updated, current information.

Reminders will be sent in early December.  Failure to receive reminders will not exempt
a late filing from the $25.00 late fee.

 

 

References

 

61 Iowa Administrative Code Chapter 22


Iowa Code sections 537.6202 - 537.6203

 

Iowa Code section 537.6201

 

Iowa Code sections 537.6113(3) and 537.6203(4)

 

Iowa Code sections 537.1301(11) - 537.1301(16)