Iowa Code § 535C.1
Title
This chapter may be cited as the “Iowa Loan Brokers Act”.
Iowa Code Chapter 535C — Loan Brokers
Iowa · statute · Iowa Code ch. 535C · 12 active provisions
Iowa Code § 535C.2
Definitions
1. “Advance fee” means consideration of any type including a payment, fee, pay-per-call charge, or deposit, which is assessed or collected prior to the closing of a loan or the issuing of a credit card. 2. “Borrower” means a person who seeks the services of a loan broker. 3. “Loan” means an agreement to advance propert…
Iowa Code § 535C.2A
Prohibition on advance fees
A loan broker shall not directly or indirectly solicit, receive, or accept from a borrower an advance fee as consideration for providing services as a loan broker. A loan broker’s fee may only be assessed or collected from a borrower after the successful procurement of a loan or issuance of a credit card.
Iowa Code § 535C.6
Penalty
A loan broker who violates a provision of this chapter is guilty of a serious misdemeanor.
Iowa Code § 535C.7
Written agreements required
A loan brokerage agreement shall be in writing, contain a description of the services that the broker agrees to perform for the borrower, and the conditions under which the borrower is obligated to pay the broker. The agreement shall be signed by the broker and the borrower. The broker shall give the borrower a copy of…
Iowa Code § 535C.8
Waiver of rights
A waiver of this chapter by a borrower prior to or at the time of entering into a loan brokerage agreement is contrary to public policy and is void. An attempt by a loan broker to have a borrower waive any rights given in this chapter is a violation of this chapter.
Iowa Code § 535C.9
Rules
The attorney general may adopt rules according to chapter 17A as necessary or appropriate to implement the purposes of this chapter.
Iowa Code § 535C.10
Remedies
1. If a broker materially violates the loan brokerage agreement, the borrower may, upon written notice, void the agreement. In addition, the borrower may recover all moneys paid the broker, a penalty of twice the amount of the fee sought by the broker, other damages, and reasonable attorney fees. A material violation i…
Iowa Code § 535C.11
Applicability
This chapter does not apply to activities or arrangements expressly approved or regulated by the department of insurance and financial services.
Iowa Code § 535C.11A
Exemption — burden of proof
In a civil proceeding pursuant to this chapter, a person claiming to be excluded from the definition of “loan broker” or “broker” has the burden of proof in substantiating the claim.
Iowa Code § 535C.12
Records
1. A loan broker shall maintain accurate records relating to transactions regulated under this chapter. The records shall include all of the following: a. The accounts of the broker. b. A copy of each contract in which the broker is a party, including loan brokerage agreements. c. The amount of receipts received by the…
Iowa Code § 533C.14
Misrepresentation of governmental approval
It is unlawful for a loan broker to represent or imply that the broker has been sponsored, recommended, or approved by, or that the broker’s abilities or qualifications have been passed upon by a governmental entity of the state or its political subdivisions.