TAKE ACTION: Payday lenders at it again
Payday lenders are trying to sneak a bill through at the last minute of the legislative session. It sounds like an affordable lending option, but upon closer inspection is anything but.
House Study Bill (HSB) 649 would open up Iowa to Flexible Credit Loans, also known as “Flex Loans”. Flex Loans are unsecured lines of credit that are capped at 17% interest, a month. Unlike traditional payday loans that cannot exceed $500, Flex Loans would range from $500 – $2,000 with loan terms ranging from 0 – 24 months.
This isn’t just a payday loan by another name, it’s payday lending on steroids. The way the loan is structured makes it ripe for abuse with daily or monthly fees, shady refinancing schemes, and so much more to trap families in a debt cycle for years.
Please take a minute to contact your Representative and tell them to vote no on this bill that would usher in a whole new phase of predatory lending in our state.
Thank you for all you do and for taking action on this issue.
For an Iowa that puts people before corporate greed,