Banking and Finance Law Daily Wrap Up, CONSUMER CREDIT: Iowa Adopts Nationwide Licensing System for Payday Lenders, (Apr 1, 2013)

By Charles A. Menke, J.D.

Amendments to the Delay Deposit Services Licensing Act—Iowa’s payday lending statute—authorize the superintendent of banking to require lenders to be licensed through a nationwide licensing system and to pay the applicable system processing fees. The revised licensing procedures, among other things, change the license expiration date from May 1 to January 1 of each year. A license that would otherwise expire on or before July 1, 2013, remains in full force and effect until Jan. 1, 2014.

The superintendent may establish by rule or order new requirements, including but not limited to, the submission of fingerprints and criminal history checks. The superintendent may use the nationwide licensing system as a channeling agent for requesting and distributing information for these purposes, and may receive confidential and privileged information from other regulatory agencies.

The law (S.B. 181) is effective July 1, 2013.

LegislativeActivity: ConsumerCredit IowaNews StateBankingLaws