Text: SCR00110 Text: SCR00112 Text: SCR00100 - SCR00199 Text: SCR Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 SENATE CONCURRENT RESOLUTION NO.
1 2 BY COMMITTEE ON COMMERCE
1 3 (SUCCESSOR TO SCR 106)
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 SENATE, THE HOUSE OF
1 24 REPRESENTATIVES CONCURRING, That the legislative
1 25 council is requested to appoint an interim study
1 26 committee to conduct a comprehensive study of certain
1 27 alternative consumer lending practices and businesses
1 28 including, but not limited to, check cashing outlets,
1 29 payday loan companies, high-cost first and second
1 30 mortgages, subprime auto loans, and other short-term
2 1 lending practices utilizing excessive fees and rates
2 2 of 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 2002 regular 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, 2002.
2 23 LSB 5792SV 79
2 24 jj/cf/24
Text: SCR00110 Text: SCR00112 Text: SCR00100 - SCR00199 Text: SCR Index Bills and Amendments: General Index Bill History: General Index
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