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PAG LIN 1 1 HOUSE CONCURRENT RESOLUTION NO. 1 2 BY CHIODO, JACOBS, RAECKER, HANSEN, 1 3 and HUSER 1 4 A Concurrent Resolution providing for the establishment 1 5 of a committee by the legislative council to conduct 1 6 a study of predatory or subprime lending practices. 1 7 WHEREAS, the loosening of federal banking and other 1 8 financial regulations since the 1980s has led to the 1 9 development of "fringe banking" services such as 1 10 "payday" lenders that often exploit consumers with 1 11 limited resources, low credit ratings, and short-term 1 12 cash-flow problems by lending small dollar amounts at 1 13 high rates of interest, until the borrower receives a 1 14 paycheck; and 1 15 WHEREAS, there were fewer than 300 payday lending 1 16 outlets nationwide in 1992, and there are now more 1 17 than 9,000 outlets, with at least 100 new locations 1 18 opening every month; and 1 19 WHEREAS, an increasing number of states, including 1 20 Iowa, are considering the enactment of additional 1 21 financial regulations regarding abuses of consumers by 1 22 these fringe banking services; NOW THEREFORE, 1 23 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES, THE 1 24 SENATE CONCURRING, That the legislative council is 1 25 requested to appoint an interim study committee to 1 26 conduct a comprehensive study of certain alternative 1 27 consumer lending practices and businesses including, 1 28 but not limited to, check cashing outlets, payday loan 1 29 companies, high-cost first and second mortgages, 1 30 subprime auto loans, and other short-term lending 2 1 practices utilizing excessive fees and rates of 2 2 interest; and 2 3 BE IT FURTHER RESOLVED, That the interim study 2 4 committee shall be composed of 10 members consisting 2 5 of members from both political parties and both houses 2 6 of the Iowa general assembly; and 2 7 BE IT FURTHER RESOLVED, That the interim committee 2 8 is authorized to meet on five days and at least one of 2 9 these days shall be set aside for the purpose of 2 10 holding a public hearing to receive oral or written 2 11 testimony from the general public regarding consumer 2 12 lending practices; and 2 13 BE IT FURTHER RESOLVED, That the committee shall be 2 14 staffed by the legislative service bureau and the 2 15 legislative fiscal bureau, and any other state agency 2 16 shall provide such information and assistance as 2 17 deemed necessary by the committee. The committee 2 18 should begin its deliberations following the 2 19 adjournment of the 2001 session of the general 2 20 assembly and shall issue its findings and 2 21 recommendations in a final report delivered to the 2 22 general assembly no later than November 15, 2001. 2 23 LSB 1590HH 79 2 24 jj/cf/24.1
Text: HCR00020 Text: HCR00022 Text: HCR00000 - HCR00099 Text: HCR Index Bills and Amendments: General Index Bill History: General Index
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