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.
I have no sympathy for the criminal New York banks and their usury lending practices.
They buy loan packages from smaller banks and then try to jack up the interest rates to 18% or better. I’ve contracted with banks for business credit cards at a 5% rate and then along come the New York criminals trying to break the contract without my knowledege or permission. I only find out after I open my monthly statement and see an exorbitant finance charge. Then I need to waste my time and money on lawyers threatening to sue these bastards.
If Obama wants to take down the criminal loan sharks in New York city, that’s fine with me.
cap interest rates
Whose going to invest where there’s no profit? How about outlawing fraud like ‘carbon credits’?
The US has the highest per capita rate of bankruptcy of any industrialized country. Even though Canada has an identical system of consumer and mortgage debt the per capita rate of personal bankruptcy in Canada is nearly 40% lower than what it is in the US. The difference is almost entirely the result of the number of bankruptcies that are the result of what are called “catastrophic” health costs.
Under the previous Bankruptcy code medical debts were treated like other debts and the bankruptcy court had the power to deal with the ability of the bankrupt to repay the debt. However, the revised code takes that power away from the court and provides no reasonable alternative for the debtor. Financial professionals deal with bankruptcy everyday and they know you need to clear the financial deadwood from the system and where possible return it to a productive state. On the other hand, the health care system is filled with financial amateurs who thought they would get more money by simply holding debtors hostage to their insolvency. It was an incredibly dumb option totally inconsistent with an efficient capital market system.
Like a..a.. Empty Suit/Pant Suit Socialism Fer sure there dude/dudettes.
Yeah, about 300% annual compounded interest. Payday loans are actually quite reasonable --if people pay them back when they next get paid! Hence, the term "payday loan." Many of the payday loan places near military bases closed down after congress passed the 36% ACI cap on service members.
Is that before or after he walks on water?
Darn tootin’. We should have credit crunches and recessions every year!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.