Iowa Sate Senator Joe Bolkom, (D-Iowa City) has introduced legislation that would limit charges for tax refund anticipation loans in the state.

Senate Bill 145, Iowa Refund Anticipation Loan Act, would cap charges using the following formula;

"The total amount of refund anticipation loan fees divided by the amount of the loan minus any refund anticipation loan fees, then divided by the number of days in the loan term, then multiplied by three hundred sixty five and expressed as a percentage."

The proposed bill also includes language that would require business to post large bonds.

"A facilitator shall post a bond in the amount of one hundred thousand dollars per office location, which shall continue in effect for five years after the facilitator ceases operation in the state. Such bond must be available to pay damages and penalties to consumers harmed by any violation of this chapter"

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