Text: SCR00103 Text: SCR00105 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 BOLKCOM
1 3 A Concurrent Resolution providing for the establishment
1 4 of a committee by the legislative council to conduct
1 5 a study of predatory or subprime lending practices.
1 6 WHEREAS, the loosening of federal banking and other
1 7 financial regulations since the 1980s has led to the
1 8 development of "fringe banking" services such as
1 9 "payday" lenders that often exploit consumers with
1 10 limited resources, low credit ratings, and short-term
1 11 cash flow problems by lending small dollar amounts at
1 12 high rates of interest, until the borrower receives a
1 13 paycheck; and
1 14 WHEREAS, every year more citizens of Iowa are
1 15 deceived by unconscionable mortgage practices, auto
1 16 loan and rent-to-own agreements, and misleading
1 17 promises of rapid refund tax advances; and
1 18 WHEREAS, an increasing number of states, including
1 19 Iowa, are considering the enactment of additional
1 20 financial regulations regarding abuses of consumers by
1 21 these fringe banking services; NOW THEREFORE,
1 22 BE IT RESOLVED BY THE SENATE, THE HOUSE OF
1 23 REPRESENTATIVES CONCURRING, That the legislative
1 24 council is requested to appoint an interim study
1 25 committee to conduct a comprehensive study of certain
1 26 alternative consumer lending practices and businesses
1 27 including, but not limited to, check cashing outlets,
1 28 payday loan companies, high-cost first and second
1 29 mortgages, subprime auto loans, rapid refund income
1 30 tax advances, rent-to-own companies, and other short-
2 1 term lending practices utilizing excessive fees and
2 2 rates 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 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 services agency and any
2 15 other state agency shall provide such information and
2 16 assistance as deemed necessary by the committee. The
2 17 committee should begin its deliberations following the
2 18 adjournment of the 2004 regular session of the general
2 19 assembly and shall issue its findings and
2 20 recommendations in a final report delivered to the
2 21 general assembly no later than November 15, 2004.
2 22 LSB 5862SS 80
2 23 kk/sh/8
Text: SCR00103 Text: SCR00105 Text: SCR00100 - SCR00199 Text: SCR Index Bills and Amendments: General Index Bill History: General Index
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