What is The Maximum Loan Amount a Borrower Can Get in Iowa?
- Borrowers can’t get over a $500 loan in accordance with the laws of Iowa.
- More than 2 outstanding loans are forbidden at a time.
Information for Charges in Iowa
- With regard to finance charges and fees, lenders can’t charge over $15 on a loan of $0-$100.
- Similarly, charging $10 more on every $100 borrowed is allowed since then.
- For every $100 borrowed for 2 weeks, there is a finance charge equaling $16.67.
In accordance with Iowa Code Ann. § 533D.1 et seq. regarding Delayed Deposit Services, licensed lenders should give to the check writer during the loan transaction an annual percentage rate as computed conforming to the federal Truth in Lending Act.
Yet real APR for payday loans can amount to as high as 337% for the average $300 loan in Iowa. (according to the Center for Responsible Lending 2019).
How Long Is the Maximum Period for a Payday Loan in Iowa?
- According to the maximum term, borrowers must repay a payday loan in 31 days.
- Borrowers can’t get rollovers or extensions and they should make a full repayment in time.
How Much Would a Payday Loan Cost?
With a 14 days term:
Loan cost: $100* 337%* (14/365)=$12.9
To return: Principal+Loan cost=$100 + $12.9=$112.9
It is not necessary for lenders to check borrowers’ ability to pay back a loan from July 2020. You should avoid a debt trap by cautiously evaluating your financial situation. The rule was changed by the CFPB.
- Charging over $15 as a non-sufficient funds fee as well as for a returned check by a lender is forbidden.
- Currently, there is no specified regulation concerning criminal action against default payments in the state law of Iowa. Lenders can’t threaten borrowers with criminal prosecution in any way.
You can find more information about payday loans on the official website of the Iowa Division of Banking.
If there are fraudulent actions on the part of a lender, you can file a complaint with the Division of banking.