Iowa Laws on Internet Payday Loans

Know the rules before you take the cash.
Know the rules before you take the cash. (Image: money image by Bradlee Mauer from

In the state of Iowa, payday lenders who operate online must adhere to laws that regulate their operations. Those who borrow money from an online lender should be well aware of the rules and regulations before they apply. Knowing the laws of the state can help those who may be unfamiliar with how payday loans work, and keep them from falling into even more debt, as payday loans are only meant for short-term solutions.

Finance Fees

The state of Iowa maintains strict laws for the fees that can be charged on a payday loan. The fee is capped at no more than $5 for every $100 that a borrower takes out. A default fee can be added for any borrower that cannot pay the loan back, at a maximum of $15 for a defaulted check.

Consumer Rights

Every borrower must be notified of their rights and responsibilities in both English and Spanish. Each agreement form is required to list the toll-free number to the superintendent's office, which is the number for customers to voice any complaints and concerns about the Internet payday loan company that they may have.

Loan Agreement

The loan agreement must have the following to abide by the laws of Iowa: the name, address and phone number of the customer, the fees and charges the customer is to pay, the due date, the payment obligations of the borrower and any fees for late payments. Additionally, there must be a statement printed in 14-point type or larger stating that the borrow can't be prosecuted in a court of law for collection of the loan.


Iowa payday loan companies must clearly post notices on their website to inform their borrowers of all fees, penalties, interest rates and other charges. This notice should also show an example of what would be charged on a $100 loan when the limit of the loan is two weeks.

Time Limitations

The maximum term of a payday loan is 14 days, according to Iowa law. Borrowers may only borrow up to $500 at a time, and they are allowed to make payments on the loan with no additional fees charged. For example, customers can make minimal payments of just $5.

Related Searches


Promoted By Zergnet


You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!