If Lenders w/ Credit Card Operations Receive Taxpayer Bailout $$, Then These Reforms Should Apply...

[Blackhatjack]

Credit card interest should be capped at 10%, fees for late payments and over the limit transactions should be capped at $10 each and all fees charged annually capped at $50.

Given the credit card debt in this country, these changes would help people stay in their homes.

And why not give creditcard holders the same concessions that can be negotiated through legitimate credit counselling programs?

It would cut down on the number of credit card defaults as people would have a chance of actually paying down their debt whereas they are drowning quickly under outrageous fees and interest rates approaching 30%.

If the recipients of taxpayer bailout $$ cannot make a profit from their cardholders with implementation of these reforms they can just close the credit card holders' accounts and collect the balances under the new reforms.

I find it morally reprehensible that taxpayer funds are given to lenders running credit card operations without there being reforms attached to protect the credit card consumers. Yet that may be the reason it was imperative to get the government $$ before the next Congress and Obama Administration are sworn in.

[closeupready]

1. What they need to do is eliminate Chap. 7 means testing altogether.

and roll back the 2005 bankruptcy reform act so people in the worst shape can get their **** together, take their lumps, get a fresh start and start participating in the economy again.

[Blackhatjack]

2. Agreed. But there is more that needs to be done ...

Three(3) of the top reasons for people to file bankruptcy are medical debt, credit card debt, and unemployment.

We can address all three reasons through reform of the present laws which would help people stay out of bankruptcy court.

But if we allow medical debt and credit card to 'hollow out' the consumer, bankruptcy is the only alternative for people with little left to lose.