Consumer debt consists of personal debts for goods purchased for personal or household consumption—as opposed to debts incurred for the operation of a business. Common examples of consumer debt include (1) credit card debt; (2) student loans; (3) home mortgage loans; (4) car or auto loans; (5) payday loans; (6) medical debts; and (7) unpaid utility and telephone bills.
In Iowa, consumer debt is regulated by both state statutes and federal laws. Credit card debt, student loans, home mortgage loans, auto loans, payday loans, medical debts, and unpaid utility and telephone bills are all considered consumer debts when they are incurred for personal or household use. The Iowa Consumer Credit Code (ICCC) provides specific regulations for consumer credit transactions in the state. Additionally, federal laws such as the Fair Debt Collection Practices Act (FDCPA) protect consumers from abusive debt collection practices. Iowa has a statute of limitations on debt collection, which limits the time frame in which a creditor can legally sue a consumer to collect a debt. For example, the statute of limitations for credit card debt and auto loans is typically 5 years, while written contracts have a 10-year limit. It's important for consumers to be aware of their rights and obligations regarding consumer debt, and to seek advice from an attorney if they face debt collection issues or need guidance on managing their debts.