Senate Concurrent Resolution 104

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