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Verified against the state regulator Sources checked · 28 July 2026

Two different claims. The first means a person traced every figure on this page to the regulator, the statute or a court — each one cited inline, click any marker to open the source. The second is automated: our monitor confirms daily that those sources still resolve and still contain the text we cite them for. Only a person moves the first. Only the monitor moves the second.

Payday loans in Iowa

Permitted, with a 31-day maximum term and no rollovers. Two statutes apply — and published accounts of the fee cap disagree with each other.

Two statutes govern your loan, not one

Delayed deposit transactions sit under Iowa Code chapter 533D — and they also qualify as consumer loans subject to the Iowa Consumer Credit Code, chapter 537, where the borrower is an individual and the debt is for personal, family or household use.Iowa · RegulationIowa Administrative Rules — delayed deposit transactions qualify as consumer loans subject to the Iowa Consumer Credit Code, Iowa Code chapter 537, if the borrower is a person other than an organization and the debt is incurred for personal, family or household use

That matters because the Consumer Credit Code carries protections the delayed deposit chapter does not.

Published fee figures conflict — check before you sign

One widely cited compilation gives the finance charge as $15 on the first $100 and $10 on each subsequent $100. Another states a flat $15 for loans of $500 or less and $30 above $500. These are not the same rule and they produce different numbers on the same loan.

We have not resolved this against the statute yet and will not pretend otherwise. Ask the lender to show you the statutory basis for the fee, and check the licence at the regulator before signing.

Maximum term
31 days.
Rollovers
Not permitted.
Fee cap
Conflicting published figures — see the note above.
NSF fee
Reported at a maximum of $15.
Criminal threats
A lender may not threaten a borrower with criminal prosecution.
Governing statutes
Iowa Code ch. 533D (delayed deposit) and ch. 537 (Consumer Credit Code).
Regulator
Iowa Division of Banking

If money is being taken from your account

You can revoke authorisation and instruct your bank to stop the payment, whatever your agreement says.

What Regulation E says about automatic payments →

Debt-collection law in Iowa

A payday loan is a consumer debt. If it goes unpaid, two Iowa rules decide what a lender can do next: how long it has to sue you, and how much of your pay a court can order taken.

Statute of limitations
10 years to sue on a written contractIowa · StatuteIowa Code § 614.1(5) — written-contract statute of limitations 10 years. Written contracts 10 years; oral 5 years.. compare all states →
Wage garnishment
25%/period, capped by annual dollar limits by income tierIowa · StatuteIowa Code § 642.21 — 25%/period, capped by annual dollar limits by income tier. Cumulative annual per-creditor caps ($250 up to 10% of wages) by expected annual earnings.. compare all states →

Being sued over an old payday loan? A collector can still file, but the time limit is a defence you can raise — and you cannot be jailed for the debt. What can and cannot happen if you don’t pay →

Sources. Iowa Administrative Rules on delayed deposit services. Iowa Code chapters 533D and 537. Iowa Division of Banking.
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