consumers were using the bankruptcy laws as licenses to steal - while it is true that the lenders are not screening as well as they could have, that does not discount the fact that alot of americans were simply scamming the system. maybe now they will just shred the CC applications, and in time when the issuers seem signups tailing off, they will stop sending them.
That's absolute lies and hogwash propogated by MBNA et al. Look at their own internal information about bankruptcies... you know what the number 1 cause of bankruptcy is? Do you ?? I do. Do you know number 2? Do you?? I do. Neither is people intentionally running up credit cards to buy stuff and refusing to pay credit card companies!
#1 is MEDICAL BILLS.
#2 is CREDIT CARD COLLECTION PRESSURE.. not refusal to pay, or even inability to pay, but credit card collection companies out and out harrassing debtors, violating the credit collection act of the 1970s (Yes, they do it all the time... CC Companies violate the law routinely and with impunity when it comes to their collection tactics) These people are unwilling or even unable to pay, but because of the collections actions of the CC departments, many in violation of FEDERAL LAW, drive folks to bankruptcy.
Willful intent to NOT pay ones debt, doesn't even make the top 10 of why folks declare bankruptcy! That's a complete falacy! Criminals don't get credit cards run them up and refuse to pay them off and run with the high price booty they bougth to jamaca... Criminals steal someone elses identity and spend money on those stolen Credit Cards, not their own!... The argument you are putting forth is absolute and unequivicable LIE.
Credit card companies themselves KNOW THIS! Its their own studies that have shown it!
Credit card companies don't obey the laws that they are supposed to, yet can buy Congress to get a law changed to cover up their own ineptitudes. This law is a travesty, and the Republicans need to be tarred and feathered for selling out to them for campaign contributions! Everyone bitches about Soro's 25 Million.. well guess what, thats exactly what the Republican Congress accepted, to sell out the american public to the Credit Card companies!