VI. IN THE BIG EVENT YOU CAN FIND POTENTIAL CRIMINAL CONSEQUENCES ARISING FROM A BOUNCED PAY DAY LOAN CHECK, MIGHT THREATENING ORIMPLYING A THREAT OFPROSECUTION NEVERTHELESS VIOLATE IOWA CODE § 537.7103 IF THE PAYDAY LOAN PROVIDER NEVER PRESSES CRIMINAL CHARGES?
Inasmuch since it is our interpretation of Chap. 533D and 537 that default on 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 techniques Act. Iowa Code § 537.7103.
But, in case its determined it is theoretically feasible to invoke the unlawful procedure associated with pay day loans in a few circumstances, it might however never be permissible for the lending company to regularly make such threats.
The possible for abusive collection techniques that post-dated or deposit that is deferred are very well
Recognized. For instance, the Fair that is federal Debt techniques Act places strict restrictions regarding 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 specially problematic within the pay day loan context, as it would put stress on borrowers not able to repay a check loan to refinance a quick payday loan to help keep the check from bouncing, an effect the legislature desired to prevent. 75