Iowa · checked October 24, 2026

Payday loans in Iowa: the rules and your way out

Payday loans allowed, with limits

Iowa licenses delayed deposit (payday) services under Iowa Code chapter 533D, capped at $500 in checks held per borrower, with a maximum hold of 31 days.

Law: Delayed Deposit Services Licensing Act, Iowa Code ch. 533D (533D.1 to 533D.16). Iowa Code 2026, chapter 533D (PDF generated Dec. 9, 2025). The fee and term rules date from 1995 and 2006 Acts.

Iowa's rules, line by line

Largest loan: $500. A licensee may not hold from any one maker checks with an aggregate face amount of more than $500 at any one time (Iowa Code 533D.10(1)(b)).
Longest term: 31 days. A licensee may not hold or agree to hold a check for more than 31 days (533D.10(1)(c)).
Fee or rate cap: No more than $15 on the first $100 of the check's face amount and no more than $10 on each additional $100, pro rata for any part of $100 (533D.9(1)). No other charges or fees (533D.10(1)(f)).
Renewals and rollovers: Prohibited. A licensee may not repay, refinance or otherwise consolidate a postdated check transaction with the proceeds of another postdated check transaction from the same licensee (533D.10(1)(e)).
Loans at once: 2 checks from one maker at any one time per licensee, including related persons (533D.10(1)(a), (2)).
Payment plan if you cannot pay: No. Chapter 533D contains no extended payment plan requirement.
State loan database: No. Chapter 533D does not create a statewide database.
Limits on collection: If the check is not negotiable on the agreed date, the lender may charge a penalty of no more than $15, collected only once. This penalty is the licensee's exclusive remedy, and no other penalties under the chapter or any other provision apply (533D.9(2)(d)).
Other rights: Before the transaction, the lender must give written disclosure of the fee, the APR, the deposit date and any penalty (533D.9(2)). Licensees must be physically located in Iowa and licensed by the Superintendent of Banking (533D.3(1)). Operating without a license is a serious misdemeanor (533D.15). The Superintendent may order restitution (533D.12(2)(f)).

If you are behind on a payday loan in Iowa

Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

Iowa Code 2026, Chapter 533D, Delayed Deposit Services (Iowa Legislature), read 2026-10-24
Iowa Division of Banking, Finance License Verification (points to NMLS Consumer Access), read 2026-10-24
Iowa Division of Banking, Finance Bureau, read 2026-10-24
Iowa Division of Banking, How do I file a complaint, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.