This letter will acknowledge the receipt on July 27, 1984, of your inquiry concerning whether a bank credit card issuer may assess: 1) annual card fees; 2) over the limit fees; and 3) late payment fees, and whether if the fees can be assessed, there are limits on the amount of such fees.
Our reply is based on the provisions of the Iowa Consumer Credit Code which applies to such card issuers. Please be advised that this reply is not an opinion of the Attorney General nor is it a formal response by the Administrator of the credit code.
A bank credit card issuer may charge annual card fees to Iowa card holders based on § 537.2501(1) (d) of the ICCC which explicitly permits this type of charge as an "additional charge" which is excluded from the finance charge. The ICCC does not set a limit on such charges. However, the Attorney General as Administrator of the ICCC has administrative rule-making power which could be used to set a dollar limit on the charge. Also, any bank which would be issuing a credit card in conjunction with a "home equity line of credit" plan should be aware that recent legislation, H.F. 2415, 70th G.A. 1984 Reg. Session, provides for a limit of §15.00 for annual fees on such plans.