Proposed bankruptcy law is disgusting

Got a multibillion dollar company that's too far in the red to save? No problem. Declare bankruptcy, fire everyone, and move on to your next business.

Got a few thousand dollars in credit card debt? Unlucky enough to get laid off and sick at the same time? Just declare bankruptcy, right? Nope. Screw you, buddy, you've STILL got to pay back Citibank.

That's basically the jist of a proposed law that would exempt credit-card debt from personal bankruptcy filings (an earlier version of which, by the way, Bill Clinton let die on his desk rather than sign into law).

How evil is this bill? Let me count the ways. First, deregulation of the lending industry effectively eliminates states' usury laws, allowing credit card companies to charge any interest rate that they deem fit. Then the companies change their business practices to lure college kids and working families into massive debt, while allowing minuscule minimum payments that contribute to the massive compounding of interest debt. "Oops, you were late on your mortgage payment. There goes your unrelated credit card's interest up to 28%!" They then have the audacity to blame cash-strapped consumers who can't get out of the hole created by a never-ending stream of pre-approved credit-card applications, and use lackey politicians to change the law to eliminate the only way out for these poor consumers.

Big banks and their lobbyists are happy, of course, as are the Republican lawmakers ramming this through committee to the President's desk. And this evil sonofabitch is going to sign it into law before you can say "thanks for all those campaign contributions, MBNA."

Pay off your credit cards people. Do it. Now.

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