537.2201 - FINANCE CHARGE FOR CONSUMER CREDIT SALES NOT PURSUANT TO OPEN END CREDIT.

        537.2201  FINANCE CHARGE FOR CONSUMER CREDIT SALES NOT      PURSUANT TO OPEN END CREDIT.         1.  With respect to a consumer credit sale, other than a sale      pursuant to open end credit, a creditor may contract for and receive      a finance charge not exceeding the maximum charge permitted by the      law of this state or the United States for similar creditors.  In      addition, with respect to a consumer credit sale of goods or      services, other than a sale pursuant to open end credit or a sale of      a motor vehicle, a creditor may contract for and receive a finance      charge not exceeding that permitted in subsections 2 to 6.  With      respect to a consumer credit sale of a motor vehicle, a creditor may      contract for and receive a finance charge as provided in section      322.19, and a finance charge in excess of that provided in section      322.19, is an excess charge in violation of this chapter.         2.  The finance charge, calculated according to the actuarial      method, may not exceed twenty-one percent per year on the unpaid      balances of the amount financed.         3.  This section does not limit or restrict the manner of      calculating the finance charge whether by way of add-on, discount, or      otherwise, so long as the rate of the finance charge does not exceed      that permitted by this section.  If the sale is a precomputed      consumer credit transaction, the finance charge may be calculated on      the assumption that all scheduled payments will be made when due, and      the effect of prepayment is governed by the provisions on rebate upon      prepayment contained in section 537.2510.         4.  For the purposes of this section, the term of a sale agreement      commences with the date the credit is granted or, if goods are      delivered or services performed ten days or more after that date,      with the date of commencement of delivery or performance.  Any month      may be counted as one-twelfth of a year, but a day is counted as      one-three hundred sixty-fifth of a year.  Subject to classifications      and differentiations the seller may reasonably establish, a part of a      month in excess of fifteen days may be treated as a full month if      periods of fifteen days or less are disregarded and that procedure is      not consistently used to obtain a greater yield than would otherwise      be permitted.  The administrator may adopt rules not inconsistent      with the Truth in Lending Act with respect to treating as regular      other minor irregularities in amount or time.         5.  Subject to classifications and differentiations the seller may      reasonably establish, the seller may make the same finance charge on      all amounts financed within a specified range.  A finance charge so      made does not violate subsection 2 if both of the following are      applicable:         a.  When applied to the median amount within each range, it      does not exceed the maximum rate permitted by subsection 1.         b.  When applied to the lowest amount within each range, it      does not produce a rate of finance charge exceeding the rate      calculated according to paragraph "a" by more than eight percent      of the rate calculated according to paragraph "a" of this      subsection.         6.  Regardless of subsection 2, the seller may contract for and      receive a minimum finance charge of not more than five dollars when      the amount financed does not exceed seventy-five dollars, or seven      dollars and fifty cents when the amount financed exceeds seventy-five      dollars.  
         Section History: Early Form
         [C75, 77, 79, 81, § 537.2201; 82 Acts, ch 1153, § 15, 18(1)]         Referred to in § 535.11, 537.2504, 537.2505