2016 Iowa Code Title XIII - COMMERCE Chapter 533D - DELAYED DEPOSIT SERVICES Section 533D.9 - Fee restriction required disclosure.

1. A licensee shall not charge a fee in excess of fifteen dollars on the first one hundred dollars on the face amount of a check or more than ten dollars on subsequent one hundred dollar increments on the face amount of the check for services provided by the licensee, or pro rata for any portion of one hundred dollars face value.

(1) Using the information included above, as well as information included in the Payday Lending PPT included in the Module, calculate the maximum fee that a payday lender can charge on a $500 payday loan for a term of 14 days. Once you determine the maximum fee, use the fee to calculate the (2) dollar amount of the fee per day, (3) accompanying interest rate per day, and (4) interest rate per year (APR). This problem uses a simple interest calculation, and the Payday Lending PPT has some examples of this calculation.

Payday loan balance	Maximum fee
$100
$200
$300
$400
$500
Maximum total fee for $500 payday loan
Divide by 14 days
Divide the daily fee by $500
Multiple the daily interest rate by 365
Maximum APR for 14 day payday loan in Iowa: