2009 Iowa Code
Title 13 - Commerce
Subtitle 3 - Money and Credit
CHAPTER 537 - CONSUMER CREDIT CODE
537.5201 - EFFECT OF VIOLATIONS ON RIGHTS OF PARTIES.

        537.5201  EFFECT OF VIOLATIONS ON RIGHTS OF PARTIES.

         1.  The consumer, other than a lessee in a consumer rental
      purchase agreement, has a cause of action to recover actual damages
      and in addition a right in an action other than a class action to
      recover from the person violating this chapter a penalty in an amount
      determined by the court, but not less than one hundred dollars nor
      more than one thousand dollars, if a person has violated the
      provisions of this chapter relating to:
         a.  Authority to make supervised loans under section 537.2301.

         b.  Restrictions on interests in land as security under
      section 537.2307.
         c.  Limitations on the schedule of payments or loan terms for
      supervised loans under section 537.2308.
         d.  Attorney's fees under section 537.2507.
         e.  Charges for other credit transactions under section
      537.2601.
         f.  Disclosure with respect to consumer leases under section
      537.3202.
         g.  Notice to consumers under section 537.3203.
         h.  Receipts, statements of account and evidences of payment
      under section 537.3206.
         i.  Form of insurance premium loan agreement under section
      537.3207.
         j.  Notice to cosigners and similar parties under section
      537.3208.
         k.  Restrictions on rates stated to the consumer under section
      537.3210.
         l.  Security in consumer credit transactions under section
      537.3301.
         m.  Prohibition against assignments of earnings under section
      537.3305.
         n.  Authorizations to confess judgment under section 537.3306.

         o.  Certain negotiable instruments prohibited under section
      537.3307.
         p.  Referral sales and leases under section 537.3309.
         q.  Limitations on executory transactions under section
      537.3310.
         r.  Prohibition against discrimination under section 537.3311.

         s.  Limitations on default charges under section 537.3402.
         t.  Card issuer subject to claims and defenses under section
      537.3403.
         u.  Assignees subject to claims and defenses under section
      537.3404.
         v.  Lenders subject to claims and defenses arising from sales
      and leases, under section 537.3405.
         w.  Door-to-door sales under section 537.3501.
         x.  Assurance of discontinuance under section 537.6109.
         y.  Prohibitions against unfair debt collection practices
      under section 537.7103.
         z.  Failure to provide a proper notice of cure or right to
      cure under sections 537.5110 and 537.5111.
         aa.  Failure to provide a notice of consumer paper under
      section 537.3211.
         With respect to violations arising from sales or loans made
      pursuant to open end credit, no action pursuant to this subsection
      may be brought more than two years after the violations occurred.
      With respect to violations arising from other consumer credit
      transactions, no action pursuant to this subsection may be brought
      more than one year after the due date of the last scheduled payment
      of the agreement.
         2.  A consumer is not obligated to pay a charge in excess of that
      allowed by this chapter, and has a right of refund of any excess
      charge paid.  A refund may not be made by reducing the consumer's
      obligation by the amount of the excess charge unless the creditor has
      notified the consumer that the consumer may request a refund and the
      consumer has not so requested within thirty days thereafter.  If the
      consumer has paid an amount in excess of the lawful obligation under
      the agreement, the consumer may recover the excess amount either from
      the person who made the excess charge or from an assignee of that
      person's rights who undertakes direct collection of payments from or
      enforcement of rights against consumers arising from the debt.
         3.  If a creditor has contracted for or received a charge in
      excess of that allowed by this chapter, or if a consumer is entitled
      to a refund and a person liable to the consumer refuses to make a
      refund within a reasonable time after demand, the consumer may
      recover from the creditor or the person liable, in an action other
      than a class action, the excess charge or refund and a penalty in an
      amount determined by the court not less than one hundred dollars or
      more than one thousand dollars.  With respect to excess charges
      arising from sales or loans made pursuant to open end credit, no
      action pursuant to this subsection may be brought more than two years
      after the time the excess charge was made.  With respect to excess
      charges arising from other consumer credit transactions no action
      pursuant to this subsection may be brought more than one year after
      the due date of the last scheduled payment of the agreement pursuant
      to which the charge was made.  For purposes of this subsection, a
      reasonable time is presumed to be thirty days.
         4.  Except as otherwise provided in this chapter, no violation of
      this chapter impairs rights on a debt.
         5.  If an employer discharges an employee in violation of the
      provisions prohibiting discharge in section 642.21, subsection 2,
      paragraph "c", the employee may within two years bring a civil
      action for recovery of wages lost as a result of the violation and
      for an order requiring the reinstatement of the employee.  Damages
      recoverable shall not exceed lost wages for six weeks.
         6.  A person is not liable for a penalty under subsection 1 or 3
      if the person notifies the consumer of an error before the person
      receives from the consumer written notice of the error or before the
      consumer has brought an action under this section, and the person
      corrects the error within forty-five days after notifying the
      consumer.  If the violation consists of a prohibited agreement,
      giving the consumer a corrected copy of the writing containing the
      error is sufficient notification and correction.  If the violation
      consists of an excess charge, correction shall be made by an
      adjustment or refund as provided in subsection 2.  The administrator,
      and any official or agency of this state having supervisory authority
      over a person, shall give prompt notice to a person of any errors
      discovered pursuant to an examination or investigation of the
      transactions, business, records and acts of the person.
         7.  A person may not be held liable in any action brought under
      this section for a violation of this chapter if the person shows by a
      preponderance of evidence that the violation was not intentional and
      resulted from a bona fide error notwithstanding the maintenance of
      procedures reasonably adapted to avoid the error.
         8.  In an action in which it is found that a person has violated
      this chapter, the court shall award to the consumer the costs of the
      action and to the consumer's attorneys their reasonable fees.
      Reasonable attorney's fees shall be determined by the value of the
      time reasonably expended by the attorney and not by the amount of the
      recovery on behalf of the consumer.  

         Section History: Early Form

         [C75, 77, 79, 81, § 537.5201] 

         Section History: Recent Form

         87 Acts, ch 80, §51
         Referred to in § 85.27, 537.3205, 537.3304, 537.3309, 537.3501,
      537.4101, 537.5110