537.2402 - FINANCE CHARGE FOR CONSUMER LOANS PURSUANT TO OPEN-END CREDIT.

        537.2402  FINANCE CHARGE FOR CONSUMER LOANS PURSUANT      TO OPEN-END CREDIT.         1.  If authorized to make supervised loans, a creditor may      contract for and receive a finance charge without limitation as to      amount or rate with respect to a loan pursuant to open-end credit as      permitted in this section except as provided in section 537.2403.         2.  For each billing cycle, a charge may be made which is a      percentage of an amount not exceeding the greatest of the following:         a.  The average daily balance of the open-end account in the      billing cycle for which the charge is made, which is the sum of the      amount unpaid each day during that cycle, divided by the number of      days in that cycle.  The amount unpaid on a day is determined by      adding to the balance, if any, unpaid as of the beginning of that day      all purchases and other debits and deducting all payments and other      credits made or received as of that day.         b.  The balance of the open-end account at the beginning of      the first day of the billing cycle, after deducting all payments and      credits made in the cycle except credits attributable to purchases      charged to the account during the cycle.         c.  The median amount within a specified range including the      balance of the open-end account not exceeding that permitted by      paragraph "a" or "b".  A charge may be made pursuant to this      paragraph only if the organization, subject to classifications and      differentiations it may reasonably establish, makes the same charge      on all balances within the specified range and if the percentage when      applied to the median amount within the range does not produce a      charge exceeding the charge resulting from applying that percentage      to the lowest amount within the range by more than eight percent of      the charge on the median amount.  
         Section History: Early Form
         [C75, 77, 79, 81, § 537.2402] 
         Section History: Recent Form
         84 Acts, ch 1237, § 2; 89 Acts, ch 295, § 2; 97 Acts, ch 187, § 4,      5; 98 Acts, ch 1100, §74; 2007 Acts, ch 26, §2         Referred to in § 533.316, 535.10, 536C.6, 537.2401, 537.2506