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Iowa Consumer Credit Code Informal Advisory Opinions - Page 2

The following opinions are informal Iowa Consumer Credit Code (ICCC) advisory opinions prepared by the staff of the Attorney General of Iowa.  They are neither an opinion of the Attorney General, nor a formal ruling by the ICCC administrator.

March 10, 1986

A lender in a consumer loan transaction may require that the borrower have credit life and/or credit accident and health insurance so long as the cost of any credit insurance written and purchased in connection with that transaction is included in the finance charge and so long as there is no violation of the ICCC.

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January 28, 1986

Offering a different APR to a consumer loan customer who purchases credit insurance in connection with a loan is not prohibited by the ICCC.  But unless the creditor could demonstrate that the purchase of the insurance was not required, the insurance cost could not be excluded from the finance charge.

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January 23, 1986

The ICCC provides that an additional charge may be made for consumer credit insurance providing life, health, and accident coverage if the insurance coverage is not required by the creditor.  However, the FTLA model forms provide for a separate choice for each type of optional insurance.  Even though these forms are not mandatory, it is the opinion of the Administrator that tying the purchase of one type insurance to another violates the ICCC.

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January 17, 1986

The ICCC permits a creditor to make an “additional charge” for title insurance on consumer loans secured by an interest in land.  The insurance laws of Iowa prohibit the sale of title insurance in Iowa.

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September 25, 1985

Unless the check-issuer cures the dishonored check by the statutory procedures, the holder of the check who files suit may not receive both surcharge and treble (triple) damages.

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September 16, 1985

There is nothing in the ICCC to prohibit a lender from offering a “giveaway” to attract business.  However, the advertising material must not be misleading or deceptive. 

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August 21, 1985

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August 21, 1985

The Second Protector Insurance does not qualify as an additional charge because it does not protect against the loss or damage to property related to the credit transaction.

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May 5, 1985

Automobile service contracts are regulated by the Iowa Department of Insurance, while the financing of such contracts is governed by the ICCC.  If the company makes consumer loans to Iowans, it must be licensed as a small loan or industrial lender.  If the company wishes to purchase the retail installment contracts from the automobile dealers who sell the service contracts, no licensure is necessary.

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April 15, 1985

Iowa creditors who are subject to the F.T.C. Credit Practices Rules and to the ICCC co-signer rules, send only one notice to co-signer which follows the federal form, but includes recommended alternations by the Iowa Attorney General.

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Contact

Office of the Attorney General of Iowa
1305 E. Walnut Street
Des Moines IA 50319

Phone: 515-281-5926

consumer@ag.iowa.gov

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