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Obama vows to change bankruptcy laws
Xinhau News Agency ^ | January 18, 2008

Posted on 01/18/2008 9:34:54 PM PST by 2ndDivisionVet

LOS ANGELES, Jan. 17 (Xinhua) -- Senator Barack Obama, vying for the Democratic presidential candidacy, vowed to change bankruptcy laws and cap interest rates during his campaign tour in Southern California, the Los Angeles Times reported Thursday.

During what his campaign dubbed a "Roundtable on Economic Opportunity" there, Obama called for an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts caused by medical expenses.

His proposal also includes extending the 36-percent limit on payday loans to military members to all Americans; encouraging banks, credit unions and community development financial institutions to provide affordable short-term and small-dollar loans; establishing a credit card bill of rights and significantly increasing emergency pre-foreclosure counseling resources, the paper said

"California has the highest number of foreclosures in the nation, and the economic impact on this state is expected to be over 23 billion U.S. dollars," Obama said, who kicked off his California tour Wednesday.

Obama blamed the federal government for not regulating lenders.

"It's an example of how when the federal government falls down on the job and is listening more to the special interests than it is to ordinary working families that we end up getting into these kinds of crises," he was quoted as saying.

Obama has proposed to create a 10-billion-dollar fund to help prevent foreclosures, eliminate some taxes and fees for families who must sell their houses, and offer counseling to homeowners.

He also proposed changes in the consumer credit card industry. "People are getting caught in a credit card system that is unfair," he said, faulting "teaser rates" that skyrocket, interest charged on late fees and hidden fees.

With Obama winning Iowa and Hillary Rodham Clinton taking New Hampshire, California, one of the biggest prizes on the Feb. 5 "Super Tuesday" that features 22 nominating contests, becomes a crucial battleground in the Democratic race to choose a candidate for the November presidential election.


TOPICS: Business/Economy; Constitution/Conservatism; Extended News; Politics/Elections; US: California; US: Illinois; US: Iowa; US: New York
KEYWORDS: bankruptcy; banks; barackhusseinobama; barackobama; ca2008; capitalism; consumers; credit; creditcards; creditunions; democraticparty; democratparty; democrats; electionpresident; elections; foreclosures; freemarkets; hillary; hillaryclinton; homeloans; interestrates; lenders; marxism; mortgages; obama; oprahcandidate; pandering; saulalinsky; socialism; subprime; supertuesday
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Socialism, pure and simple.
1 posted on 01/18/2008 9:34:55 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Let me guess, the bankruptcy laws are racist. Anyone who says they aren’t is a racist. Anyone who even *thinks* they aren’t is a racist. Anyone who even reads someone else saying that the laws aren’t racist, is a racist.


2 posted on 01/18/2008 9:42:05 PM PST by COgamer
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To: 2ndDivisionVet
ChiCom Xinhua news agency endorses Iraq Hussein Osama.

And Bill thought Johnny Huang had that cash cow all sowed up.

yitbos

3 posted on 01/18/2008 9:44:49 PM PST by bruinbirdman ("Those who control language control minds. - Ayn Rand")
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To: 2ndDivisionVet
Unbelievable.

"He also proposed changes in the consumer credit card industry. "People are getting caught in a credit card system that is unfair," he said, faulting "teaser rates" that skyrocket, interest charged on late fees and hidden fees."

A credit card system that is unfair? Damned stupid people who get a credit card who shouldn't have it in the first place, then they treat it like a money grant?

Unbelievable.

4 posted on 01/18/2008 9:47:46 PM PST by rlmorel (Liberals: If the Truth would help them, they would use it.)
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To: 2ndDivisionVet
Obama called for an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts caused by medical expenses.

Awesome. So people with health problems will have a harder time getting loans. And if he caps interest rates, they could get shut out entirely.

5 posted on 01/18/2008 9:48:11 PM PST by Young Scholar
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To: 2ndDivisionVet
“His proposal also includes extending the 36-percent limit on payday loans to military members to all Americans”

36%???

That’s obscene.

What fool would do that?

6 posted on 01/18/2008 9:55:49 PM PST by DB
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To: Young Scholar

Oh, lets see: Should I feel bad for Credit Card companies that charge usurious rates? Hmm, NO.

Should I feel bad for Credit Card companies who extend credit to credit risks, and then have those credit risks seek bankruptcy protection? Hmm, NO.


7 posted on 01/18/2008 9:56:44 PM PST by The Cuban
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To: 2ndDivisionVet

Just creating problems in the Free Market, so the State can bail out the mess later...


8 posted on 01/18/2008 9:57:08 PM PST by endthematrix (He was shouting 'Allah!' but I didn't hear that. It just sounded like a lot of crap to me.)
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To: DB

Well right now they’re about 300% on “payday loans.” But it’s a two-week loan so it’s not exactly a fair comparison.


9 posted on 01/18/2008 9:57:27 PM PST by RockinRight (Huck(abee, not the Freeper Huck) Sucks.)
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To: Young Scholar
Awesome. So people with health problems will have a harder time getting loans.

I've never heard of unsecured loans having such conditions. Besides the old bankruptcy laws pretty much allowed chapter 7 for any reason.

10 posted on 01/18/2008 9:59:04 PM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: The Cuban

You mean profit?

Oh, and you should add the word BIG in front of Credit Card companies. Just call ‘em Big Credit...democrats will understand.


11 posted on 01/18/2008 10:01:50 PM PST by endthematrix (He was shouting 'Allah!' but I didn't hear that. It just sounded like a lot of crap to me.)
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To: 2ndDivisionVet

Wow. All of the candidates are really pulling out their little candy bags now.

They all make me hurl.


12 posted on 01/18/2008 10:05:59 PM PST by Lijahsbubbe
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To: 2ndDivisionVet

Cool, this means I can make moronic financial decisions, go badly in debt, and Obama will bail me out! Where do I sign up?

This is one of the most blatant examples of vote buying I’ve seen.


13 posted on 01/18/2008 10:07:43 PM PST by antiRepublicrat
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To: 2ndDivisionVet

Deadbeat protection to get the votes of Jackass Party members.


14 posted on 01/18/2008 10:13:53 PM PST by the lone wolf (Good Luck, and watch out for stobor.)
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To: DB
While I am no big defender of the payday loan "industry", lets think for a minute about what a 36% interest rate really means.

Suppose you find yourself urgently in need of $100 for a week, until your next paycheck.

Now suppose I have an extra $100 and am willing to loan it to you, but need to charge you just $5 to cover the cost of making out the forms, keeping track of the transaction, etc.

Now, to me, $5 seems like a very low charge for a loan like this, but it really amounts to 260% per year.

36% will drive most payday lenders out of business. Maybe good, maybe bad, but I can guarantee you people go to payday lenders because they need the service. Drive them out of business and the poor will be worse off than they are today.

15 posted on 01/18/2008 10:26:22 PM PST by CurlyDave
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To: CurlyDave

Well, then the way around the 36% rule is to charge 36% on the loan...PLUS a 30 dollar processing fee.

Problem solved. Barak is a dumba$$. Anyone that votes for the dumba$$ because of his 36% platform is a dumba$$.
(I think)


16 posted on 01/18/2008 10:35:20 PM PST by mamelukesabre
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This guy is turning out to be a cheap, pandering demagogue.
17 posted on 01/18/2008 10:53:59 PM PST by Godwin1 (merican restaurant.)
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To: Godwin1
...a cheap, pandering demagogue.

Why, who would've thought Dems would behave that way? I'm shocked!

It's a real race to the bottom over on the D side, isn't it?

18 posted on 01/18/2008 11:39:42 PM PST by ProtectOurFreedom
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To: rlmorel

“He also proposed changes in the consumer credit card industry. “People are getting caught in a credit card system that is unfair,” he said, faulting “teaser rates” that skyrocket, interest charged on late fees and hidden fees.”

Can you imagine the outrage if the CC companies took the logical position in response to this tripe and disqualified people w/ substandard IQs (e.g. most of the Dem constituents) from obtaining credit cards?


19 posted on 01/19/2008 4:52:22 AM PST by Constitutional Patriot (Socialism is the cancer of humanity.)
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To: 2ndDivisionVet
Obama called for an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts caused by medical expenses.

"Your honor, I plead before the bankruptcy court to understand that my 50" plasma TV was a medical necessity. You see, I gots a problem with my eyes! I just can't see myself watchin' TV on anything smaller."

20 posted on 01/19/2008 5:05:33 AM PST by GreenAccord (Bacon Akbar!)
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