From the Desk of the Regulator

From the Desk of the Regulator: Iowa

By Cornerstone SupportApril 15, 2016
 

Recent information from the office of the Iowa Attorney General that addresses specific requirements for creditors and debt collectors.

Creditor/Assignees:

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

The ICCC requires all creditors and assignees to pay an annual notification fee of $10.00. 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 volume fee is $10.00 for every $100,000 of average unpaid balances on all Iowa 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 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. With the exception of new filers, notifications received more than 30 days after the due date will be assessed a $25.00 late fee.

Debt Collectors:

Iowa does not license debt collectors. However, debt collectors who collect over $25,000 a year (all accounts, not just Iowa accounts) are required to file notification with the Attorney General of Iowa and pay a $10 annual fee.

Debt Collection Licensing Portal

Our office vigorously enforces the Iowa Debt Collection Practices Act. We strongly urge all debt collectors to become familiar with this law and to consult with private legal counsel, as necessary, before beginning collection activities in Iowa.

Debt collectors who fail to file notification with the Office of the Attorney General and pay the appropriate fee may be subject to late fees of $25, as well as a possible civil action in which the administrator may recoup interest, the costs of the action, and a penalty not exceeding the greater of $1,000 or three times the fee owed.

Debt Collectors 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. With the exception of new filers, notifications received more than 30 days after the due date will be assessed a $25.00 late fee.

How to File:

Online: You can file online and pay the $10.00 annual registration fee and any applicable volume fees (if any) through our website, www.iowaattorneygeneral.gov; under the “For Businesses” section. This system does not allow payment via credit card. The online payment option requires filers to enter bank account information to establish an automatic debit. Filers paying by auto-debit will be charged a $1.00 convenience fee.

By Mail: If you prefer, you can fill out the printable form along with a check. Checks should be made payable to “Iowa Consumer Credit Administration Fund” and sent, along with the completed Creditor/Assignee Notification Printable Form* to:

Office of the Attorney General of Iowa
Consumer Protection Division
Attn: Notification & Fees Administrator
1305 E. Walnut St.
Des Moines, IA 50319-1016

Email: [email protected]

*Additional documents are not required.

Entities who have filed notification by mail with the Office of the Attorney General will not receive a confirmation, notice or hard copy license. Only those filing with rejected notifications will be notified by our staff. Those filing online will receive automatic confirmation notice upon completion.

Much more information regarding the ICCC can be found on our website www.iowaattorneygeneral.gov under the “For Businesses” section.

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