VI. IN THE BIG EVENT YOU CAN FIND POTENTIAL CRIMINAL CONSEQUENCES ARISING FROM A BOUNCED CASH ADVANCE CHECK, MIGHT THREATENING ORIMPLYING A THREAT OFPROSECUTION BUT VIOLATE IOWA CODE § 537.7103 IF THE PAYDAY LOAN PROVIDER NEVER PRESSES CRIMINAL CHARGES?
Inasmuch as it’s our interpretation of Chap. 533D and 537 that default for a check loan will not implicate the process that is criminal threatening unlawful effects for non-payment of this loan would break the Iowa commercial collection agency procedures Act. Iowa Code § 537.7103.
Nonetheless, in case its determined it would nevertheless not be permissible for the lender to routinely make such threats that it is theoretically possible to invoke the criminal process in connection with payday loans in some circumstances.
The possible for abusive collection techniques that post-dated or deferred deposit checks are very well
Recognized. For instance, the Fair that is federal Debt techniques Act places strict restrictions in the solicitation and cashing of post-dated checks. 15 usage § l 692f(2)-(4). 73
The risk of unlawful consequences for non-payment of financial obligation is inherently coercive and oppressive. 74 Utilizing such threats is very problematic when you look at the loan that is payday, because it would place force on borrowers struggling to repay a check loan to refinance a quick payday loan to help keep the check from bouncing, an outcome the legislature desired to prevent. 75