Delayed Deposit Services DELAYED DEPOSIT SERVICES, 533D.9 533D.9 Fee restriction required disclosure.

1. A licensee shall not charge a fee in excess of fifteen dollars on the first one hundred dollars on the face amount of a check or more than ten dollars on subsequent one hundred dollar increments on the face amount of the check for services provided by the licensee, or pro rata for any portion of one hundred dollars face value.

2. A licensee shall give to the maker of the check, at the time any delayed deposit service transaction is made, or if there are two or more makers, to one of them, notice written in clear, understandable language disclosing all of the following:

a. The fee to be charged for the transaction.

b. The annual percentage rate as computed pursuant to the federal Truth in Lending Act.

c. The date on which the check will be deposited or presented for negotiation.

d. Any penalty, not to exceed fifteen dollars, which the licensee will charge if the check is not negotiable on the date agreed upon. A penalty to be charged pursuant to this section shall only be collected by the licensee once on a check no matter how long the check remains unpaid. A penalty to be charged pursuant to this section is a licensees exclusive remedy and if a licensee charges a penalty pursuant to this section no other penalties under this chapter or any other provision apply.

3. In addition to the notice required by subsection 2, every licensee shall conspicuously display a schedule of all fees, charges, and penalties for all services provided by the licensee authorized by this section. The notice shall be posted at the office and every branch office of the licensee. Using the information included above, as well as information included in the Payday Lending PPT included in the Module, calculate the maximum fee that a payday lender can charge on a $500 payday loan for a term of 14 days. Once you determine the maximum fee, use the fee to calculate the (2) dollar amount of the fee per day, (3) accompanying interest rate per day, and (4) interest rate per year (APR). This problem uses a simple interest calculation, and the Payday Lending PPT has some examples of this calculation.

Payday Loan	Maximum Fee
$100
$200
$300
$400
$500
Maximum total fee for $500 payday loan
Divide by 14 days
Divide the daily fee by $500
Multiple the daily interest rate by 365
Maximum APR for 14 day payday loan in Iowa