Iowa Fair Debt Collection Practices Act
The U.S. Congress found that the debt collection industry was loaded with abuse and companies that use harassment as a means to collect money. The practices of many of these debt collectors in Indiana can lead to despair and household instability. As such, the Fair Debt Collection Practices Act was enacted. States have the right to enact statutes that also cover unfair debt collection practices.
Iowa has enacted consumer protection laws that cover collection agencies and creditors and to consumer debts (as opposed to business debts or municipal fines).§§537.7101 to 537.7103The law forbids the use of threats or coercion, oppression, harassment or abuse, disseminations of information, misrepresentations, simulations of legal process, seeking reaffirmation of a debt already in bankruptcy without explanation of the consequences, charging collection costs unless “reasonably related to the actions taken by the debt collector” and that the collector is legally entitled to the fee, communicating with a debtor known to be represented by counsel (unless counsel fails to respond).
The Iowa statute also has a provision which forbids debt collection by a health care provider against an injured worker while a contested workers compensation case is pending except for the sending of one itemized account to the patient.
This debt collection law in Iowa provides for private remedies in the form of actual damages and injunctions for unconscionable conduct.