Iowa Debt Settlement Laws

Debt Settlement License Registration Required:

Statute: Iowa Code §533A.1 et seq.

Definitions: “Debt management” means, when done for a fee, any of the following: 

  1. Arranging or negotiating, or attempting to arrange or negotiate, the amount or terms of debt owed by a debtor to a creditor. 
  2. Receiving from a debtor, directly or indirectly, money or evidences thereof for the purposes of distributing the same to one or more creditors of the debtor in payment or partial payment of the debtor’s obligations. 
  3. Serving as an intermediary between a debtor and one or more creditors of the debtor for the purpose of obtaining concessions from the creditors. 
  4. Engaging in debt settlement. 

“Debt settlement” means seeking to settle the amount of a debtor’s debts with creditors for less than the amounts owed on the debts.