Iowa short term lending reform bill unlikely to succeed

A short term lending bill moving through the Iowa Senate is unlikely to succeed, according to the Iowa Independent. The measure, which would cap lending interest rates at 36 percent, has received widespread support from state legislators, but is unlikely to pass during the current governing session. Advocates of the bill hope that Democrats in the Senate will "funnel" the bill into the next term, otherwise the proposal as it stands would terminate at the end of the current session. The Independent reports that in early March, the Senate Human Resources Committee voiced its support for the bill through a 9-3 vote. Yet, rather than advance to the Senate chambers, it stalled in the Senate Commerce Committee. The inability for the Senate to move forward with the bill has drawn criticism from its supporters. "I believe never before has there been so much support for short term lending reform, both inside and outside of the Statehouse," Mike McCarthy, of Iowa Citizens for Community Improvement, told the Independent. Previously, Senate Democrats attempted to attach an amendment capping short term lending rates on a banking bill, but the measure was defeated 56-40.