Lang
12/22/22
An Iowa City couple’s complaint has led to a Utah-based bank agreeing to cease issuing loans in Iowa that exceed the state’s interest rate cap.
Transportation Alliance Bank of Ogden, Utah…also known as TAB…must also provide refunds to consumers who were charged the illegal interest rates. The conditions come under a settlement reached with Iowa Attorney General Tom Miller and the Iowa Division of Banking.
Miller alleged that TAB failed to comply with the Iowa Consumer Credit Code by offering consumer installment loans that far exceeded the maximum finance charge of 21% APR.
In one case, the interest on a $1,500 loan for an Iowa City couple came to 188.9%. The final cost of their loan would be $3,327. The couple had an EasyPay loan when purchasing a puppy from Petland. The couple reached out to the AG’s office to file a complaint against Petland after the puppy died. The puppy was found to have serious illnesses almost immediately after adoption, requiring thousands of dollars in veterinary care.
Upon receipt of the complaint, the AG’s office found the couple had purchased the puppy for approximately $5,000, paying $500 out of pocket and signing financing papers for the purchase through a $1,500 loan and putting $3,000 on a credit card.
The interest rates on the loan caught the attention of investigators, who opened an investigation.
TAB has since voluntarily ceased making loans in Iowa. The company does not admit to any wrongdoing or violations.