1. Does the borrower’s check that is“bad in a quick payday loan represent a criminal activity?
Even though the workplace associated with ICCC Administrator is certainly not vested with statutory authority to interpret Iowa Code § 714.1(6), the rule supply making false drawing and uttering of a check (now described as “theft by check”) a criminal activity, it is important to exan1ine exactly just how that supply would probably be reproduced to default on a quick payday loan to ascertain whether a payday lender’s threats invoking the specter of unlawful procedure violates the Iowa business collection agencies techniques Act, Iowa Code § 537.7103.
Because of the means the cash advance, or “check loan” company runs, defaults on such loans will immediately include a “bad check. ” Payday loan providers have actually elected to go fully into the company of using checks which is why it really is generally speaking thought there are currently insufficient funds, 2 and so they signify their understanding and willingness to simply accept such checks by charging you a prepaid finance charge3 to take action.