Debt collector laws in Iowa

Iowa's collection law

State law

Iowa Debt Collection Practices Act (part of the Iowa Consumer Credit Code)

Law

Iowa Code §§ 537.7101–537.7103

Covers original creditors

Yes

Official text

Read the law

Iowa's law reaches original creditors as well, as in 22 of the 48 states we cover.

What Iowa adds to the FDCPA

• The law covers anyone collecting a covered consumer debt, including a creditor collecting its own debt (Iowa Code § 537.7102(5)).
• A collector may contact your employer only in limited ways: once a month to verify employment, or once every 3 months to ask about debt counseling, without saying the debt is in default (Iowa Code § 537.7103(3)(a)(5)-(6)).
• A collector may not falsely threaten arrest, garnishment or seizure of property, or threaten any action the law does not allow (Iowa Code § 537.7103(1)).
• A collector may not get you to reaffirm a debt discharged in bankruptcy without explaining that you don't have to (Iowa Code § 537.7103(5)(b)).

Can you sue a collector under Iowa law?

Yes. You can recover actual damages plus a penalty set by the court of $100 to $1,000 (not in a class action) for unfair collection practices under § 537.7103 (Iowa Code § 537.5201(1)(a)(25)). Time limits: for credit cards and other open-end credit, sue within 2 years of the violation; for other credit, within 1 year after the last scheduled payment date (§ 537.5201(1)(b)).

Under federal law you can also sue a collector that breaks the FDCPA within 1 year, for your actual damages, up to $1,000 more and your attorney's fees (15 U.S.C. 1692k).

Collector licensing in Iowa

License required

No statewide license

Who licenses

No collection license. Debt collectors above a dollar threshold must file a yearly notification with the Consumer Credit Code administrator (Iowa Attorney General) (Iowa Code §§ 537.6201, 537.6202).

Iowa is one of 12 states in our 48 state guides with no statewide license.

In nearby states

• Minnesota: Yes
• Wisconsin: Yes
• Illinois: Yes
• Missouri: No statewide license

Reporting a collector in Iowa

• Iowa: Iowa Attorney General – Consumer Protection Division · 515-281-5926
• Federal: the Consumer Financial Protection Bureau takes complaints about debt collectors at consumerfinance.gov/complaint · (855) 411-2372.
• You can also report a collector to the Federal Trade Commission at ReportFraud.ftc.gov.

When a collector crosses the line in Iowa

1. Write it down

   Log each call (date, time, who) and keep every letter, voicemail and text.

2. Look up the company

   Iowa has no statewide license, so ask the collector for its full name and address and keep them with your records.

3. Write to the collector

   Use a letter to dispute a debt or to stop collector calls; keep a copy and the mailing receipt.

4. File a complaint

   Complain to Iowa Attorney General – Consumer Protection Division. You can also complain to the CFPB at consumerfinance.gov/complaint.

5. Know your right to sue in Iowa

   Under Iowa law: Yes. You can recover actual damages plus a penalty set by the court of $100 to $1,000 (not in a class action) for unfair collection practices under § 537.7103 (Iowa Code § 537.5201(1)(a)(25)).

Questions about collector laws in Iowa

More for Iowa

• The full Iowa guide
• Statute of limitations in Iowa: 10 years
• Wage garnishment in Iowa
• Sued by a debt collector in Iowa: 20 days
• “Is my debt too old?” checker for Iowa
• Dispute a debt and ask for proof (validation letter)
• Tell a collector to stop or limit contact
• Debt collector licensing by state
• Guide: how to dispute a debt
• Guide: how to stop collector calls

Debt collector laws in nearby states