Iowa Code

Iowa Code § 537.2402 (2026)

Finance charge for consumer loans pursuant to open-end credit

✓ current as of July 2026
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1. If authorized to make supervised loans, a creditor may contract for and receive a finance charge without limitation as to amount or rate with respect to a loan pursuant to open-end credit as permitted in this section except as provided in section 537.2403. 2. For each billing cycle, a charge may be made which is a percentage of an amount not exceeding the greatest of the following: a. The average daily balance of the open-end account in the billing cycle for which the charge is made, which is the sum of the amount unpaid each day during that cycle, divided by the number of days in that cycle. The amount unpaid on a day is determined by adding to the balance, if any, unpaid as of the beginning of that day all purchases and other debits and deducting all payments and other credits made or received as of that day. b. The balance of the open-end account at the beginning of the first day of the billing cycle, after deducting all payments and credits made in the cycle except credits attributable to purchases charged to the account during the cycle. c. The median amount within a specified range including the balance of the open-end account not exceeding that permitted by paragraph “a” or “b”. A charge may be made pursuant to this paragraph only if the organization, subject to classifications and differentiations it may reasonably establish, makes the same charge on all balances within the specified range and if the percentage when applied to the median amount within the range does not produce a charge exceeding the charge resulting from applying that percentage to the lowest amount within the range by more than eight percent of the charge on the median amount. [C75, 77, 79, 81, §537.2402] 84 Acts, ch 1237, §2; 89 Acts, ch 295, §2; 97 Acts, ch 187, §4, 5; 98 Acts, ch 1100, §74; 2007 Acts, ch 26, §2 Referred to in §533.316, 535.10, 536.13, 536A.31, 536C.6, 537.2401, 537.2506

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Notes of Decisions
Cited in 4 cases, 1975–2009 · leading case: Anderson Fin. Servs., LLC v. Miller, 769 N.W.2d 575 (Iowa 2009).
Anderson Fin. Servs., LLC v. Miller, 769 N.W.2d 575 (Iowa 2009). · cites it 6× “(codified at Iowa Code § 537.2402 (1)). The 2007 legislation also added a new section to chapter 537, section 537.”
State Ex Rel. Turner v. First of Omaha Serv. Corp., 269 N.W.2d 409 (Iowa 1978). · cites it 24× “Plaintiff asserted defendants were assessing their Bank Americard customers a finance charge based on the balance owing at the beginning of the billing cycle without deductions for the payments or credits made during that cycle, in violation of section 537.2402(2), The Code.…”
Iowa Ex Rel. Turner v. First of Omaha Serv. Corp., 401 F. Supp. 439 (S.D. Iowa 1975). “Division I seeks temporary and permanent injunctive relief to halt the following three activities of the defendants: (1) assessing or collecting *442 of finance charges in excess of the rate allowed by § 537.2402(3) of the ICCC; and (2) engaging in any future violations of §§…”
Anderson Fin. Servs., Llc D/b/a Loan Max & Loan Smart Vs. Thomas J. Miller, Attorney Gen. Of The State Of Iowa In His Off. Capacity (Iowa 2009). · cites it 5× “(codified at Iowa Code § 537.2402 (1)). The 2007 legislation also added a new section to chapter 537, section 537.”
— Iowa Code § 537.2402(1) — 2 cases
Anderson Fin. Servs., LLC v. Miller, 769 N.W.2d 575 (Iowa 2009). “(codified at Iowa Code § 537.2402 (1)). The 2007 legislation also added a new section to chapter 537, section 537.”
Anderson Fin. Servs., Llc D/b/a Loan Max & Loan Smart Vs. Thomas J. Miller, Attorney Gen. Of The State Of Iowa In His Off. Capacity (Iowa 2009). “(codified at Iowa Code § 537.2402 (1)). The 2007 legislation also added a new section to chapter 537, section 537.”
— Iowa Code § 537.2402(2) — 1 case
State Ex Rel. Turner v. First of Omaha Serv. Corp., 269 N.W.2d 409 (Iowa 1978). “Plaintiff asserted defendants were assessing their Bank Americard customers a finance charge based on the balance owing at the beginning of the billing cycle without deductions for the payments or credits made during that cycle, in violation of section 537.2402(2), The Code.…”
— Iowa Code § 537.2402(3) — 2 cases
State Ex Rel. Turner v. First of Omaha Serv. Corp., 269 N.W.2d 409 (Iowa 1978). “Plaintiff asserted defendants were assessing their Bank Americard customers a finance charge based on the balance owing at the beginning of the billing cycle without deductions for the payments or credits made during that cycle, in violation of section 537.2402(2), The Code.…”
Iowa Ex Rel. Turner v. First of Omaha Serv. Corp., 401 F. Supp. 439 (S.D. Iowa 1975). “Division I seeks temporary and permanent injunctive relief to halt the following three activities of the defendants: (1) assessing or collecting *442 of finance charges in excess of the rate allowed by § 537.2402(3) of the ICCC; and (2) engaging in any future violations of §§…”
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