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HF 2326 Iowa House · 2025-2026 Regular Session

A bill for an act relating to debt management programs, services, fees, and licensee requirements.

HF 2326 amends Iowa's debt management laws to change how fees are charged and funds are handled. It requires debt management licensees to maintain separate trust accounts for debtor payments (Section 1) and allows licensees to receive third-party payments (Section 3), removing a prior restriction. The bill establishes that licensees may only charge fees after successfully renegotiating, resolving, or reducing at least one debt, with the fee proportional to the debt amount resolved (Section 4). This directly affects debt management licensees and debtors by altering fee structures and fund handling requirements, while exempting licensed services from credit services organization laws (Section 6).
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
House Passage
Apr 2026
Senate Passage
Governor
Introduced Feb 6, 2026 Last action Apr 27, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Reprinted · 5 edits
MODERATE
The bill was reprinted from a draft version to a final version with significant substantive changes. The most critical addition is a new requirement that licensees must attempt to renegotiate debt terms if a debtor fails to complete payments, and they cannot charge extra fees for this service. Additionally, the fee cap was explicitly increased to a maximum of 30% of the total enrolled debt, and a new rule allows fees to be collected incrementally over the repayment period.
Scope change
The scope of the bill was expanded to include specific provisions for debt settlement agreements and multi-payment plans, clarifying how fees apply in these scenarios.
REQUIREMENT

Added a mandatory requirement for licensees to attempt renegotiation if a debtor defaults on a settlement agreement, prohibiting additional fees for this specific service.

Explicitly set the maximum fee cap at 30% of the total enrolled debt amount.

Authorized licensees to collect fees incrementally over the repayment period rather than requiring upfront payment.

DEFINITION

Replaced the vague term 'service' with the more specific 'debt settlement agreement' to clarify applicability.

ENFORCEMENT

Added a new subsection clarifying that the 30% fee cap applies to the total aggregate fees charged to a debtor.

Floor votes · House Apr 1, 2026

How they voted

89–2
Passed · 8 other
Total votes 99
Apr 1, 2026
D Democratic32
27 Yea 2 Nay 3
84% Yea
R Republican67
62 Yea 5
92% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
2
Committee
0
Amendments
4
Apr 27, 2026
Introduced
Amendment S-5214 filed.
upper
Apr 20, 2026
Introduced
Amendment S-5199 filed.
upper
Apr 1, 2026
Lower · Passed
Passed House, yeas 90, nays 2.
lower
Apr 1, 2026
Lower · Passed
Amendment H-8274 adopted.
lower
Mar 31, 2026
Introduced
Amendment H-8274 filed.
lower
Feb 6, 2026
Introduced
Introduced, placed on calendar.
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.