Last week, Congress approved sweeping bankruptcy reform legislation. The bill drastically tilts the playing field against financially strapped families in favor of financially robust credit card industry. I voted against this grossly unfair legislation. Here are some reasons why:
High Medical Costs Account for Nearly Half of all Bankruptcies
Many bankruptcies are driven by unforeseen economic hardships. In fact, a recent Harvard University study revealed that nearly half all personal bankruptcies happen when families are unable to keep up with the high cost of medical treatment for a seriously ill or injured loved one.
We should be doing more to help people handle ever-growing health care costs. This bill does just the opposite. It would make it much harder for these medically distressed families to seek financial relief. People in this situation would be required to petition a court to discharge their debts through simple bankruptcy. Costly litigation is not an expense that many debtors can afford, especially when every available financial resource is needed for medical care.
The Bill Won’t Prohibit Credit Card Companies from Predatory Lending, Gouging Consumers
Supporters of this legislation claim that more restrictive bankruptcy laws will offer greater protection to consumers. This couldn't be further from the truth!
The bill will protect credit card companies by making it harder for individuals to seek relief in bankruptcy court. Meanwhile, banks are virtually unrestricted in their ability to engage in deceptive marketing schemes, charge hefty late fees and raise interest rates on a whim. These unfair lending practices force many deeply indebted consumers into bankruptcy by making it even more difficult to meet their financial obligations.
At a time when Americans are facing massive layoffs, disappearing pensions, ever growing health care costs, and numerous corporate scandals, it is wrong to give credit card companies a free hand while making it harder for those in over their heads to get back on their feet.
Passage of this legislation by the House and Senate has cleared it for signature by President Bush. There is no doubt that he will sign it into law.
Again, I strongly opposed this anti-consumer, special interest legislation. It’s not good news for working families. I’ll work with like-minded colleagues on legislative initiatives to weaken its impact.
|
Sincerely,
|
|
|
Pete Stark
Member of Congress
|
______________________________________________________
Sign Up Here to Receive Periodic Email Updates from Pete Stark
By subscribing to e-mail updates you agree to receive regular messages to your E-mail account.
If you no longer wish to receive these and other E-mail updates, reply to this message and type “REMOVE” in the subject header
