537.2502 - DELINQUENCY CHARGES.

        537.2502  DELINQUENCY CHARGES.         1.  With respect to a consumer credit transaction not pursuant to      an open-end credit arrangement and other than a consumer lease or      consumer rental purchase agreement, the parties may contract for a      delinquency charge on any installment not paid in full within ten      days after its due date, as originally scheduled or as deferred, in      an amount as follows:         a.  For a precomputed transaction, an amount not exceeding the      greater of either of the following:         (1)  Five percent of the unpaid amount of the installment, or a      maximum of twenty dollars.         (2)  The deferral charge that would be permitted to defer the      unpaid amount of the installment for the period that it is      delinquent.         b.  For an interest-bearing transaction, an amount not      exceeding five percent of the unpaid amount of the installment, or a      maximum of fifteen dollars.         2.  A delinquency charge under subsection 1 may be collected only      once on an installment however long it remains in default.  No      delinquency charge may be collected with respect to a deferred      installment unless the installment is not paid in full within ten      days after its deferred due date.  A delinquency charge may be      collected at the time it accrues or at any time afterward.         3.  A delinquency charge shall not be collected under subsection      1, paragraph "a", on an installment that is paid in full within      ten days after its scheduled or deferred installment due date even      though an earlier maturing installment or a delinquency or deferral      charge on an earlier installment may not have been paid in full.  For      purposes of this subsection, payments associated with a precomputed      transaction are applied first to current installments and then to      delinquent installments.         4.  With respect to open-end credit, the parties may contract for      a delinquency charge on any payment not paid in full when due, as      originally scheduled or as deferred, in an amount up to fifteen      dollars.         5.  A delinquency charge under subsection 4 may be collected only      once on a payment however long it remains in default.  A delinquency      charge shall not be collected with respect to a deferred payment      unless the payment is not paid in full on or before its deferred due      date.  A delinquency charge may be collected at the time it accrues      or at any time afterward.         6.  A delinquency charge shall not be collected under subsection 4      on a payment associated with a precomputed transaction that is paid      in full on or before its scheduled or deferred due date even though      an earlier maturing payment or a delinquency or deferred charge on an      earlier payment has not been paid in full.  For purposes of this      subsection, payments are applied first to amounts due for the current      billing cycle and then to delinquent payments.  
         Section History: Early Form
         [C66, 71, 73, § 536.13(7), 536A.23(3); C75, 77, 79, 81, §      537.2502] 
         Section History: Recent Form
         89 Acts, ch 68, §4; 93 Acts, ch 124, §1; 95 Acts, ch 113, §1; 96      Acts, ch 1114, § 3--5; 97 Acts, ch 187, § 6, 7; 99 Acts, ch 15, §3;      2003 Acts, 1st Ex, ch 1, §125, 133         [2003 Acts, 1st Ex, ch 1, §125, 133, amendments to subsections 3      and 6 rescinded pursuant to Rants v. Vilsack, 684 N.W.2d 193]         2004 Acts, 1st Ex, ch 1001, §22, 23         Referred to in § 535.10, 537.2510