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Lou Dobbs on the Bankruptcy Law


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A bit disingenuous to call out Lincoln's quote for the effect that the government be the ultimate protector.

 

Using Dobbs' logic, because credit card companies are doing well, they should just forgive the debts of people whofile bankruptcy. All the folks who pay the bills should have no problem shouldering the extra costs.

 

Nothing like Dobbs continuing to spout the populist party line. Anyone have Space.com stock for sale?

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A bit disingenuous to call out Lincoln's quote for the effect that the government be the ultimate protector.

 

Using Dobbs' logic, because credit card companies are doing well, they should just forgive the debts of people whofile bankruptcy.  All the folks who pay the bills should have no problem shouldering the extra costs.

 

Nothing like Dobbs continuing to spout the populist party line.  Anyone have Space.com stock for sale?

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It's the Credit Card companies' business practices that cause the bankruptcies in the first place.

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It's the Credit Card companies' business practices that cause the bankruptcies in the first place.

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I don't buy that excuse. People can't be expected to be responsible with their credit cards? Now we're going to expect the credit card companies to moniter people's ability to handle their debt? The civil libertarians will love that!

 

1.5MM bankrupcies a year is an enormous number. How often are some of these people declaring bankruptcy? I haven't read the law, but I thought I saw an article that refered to certain protections for those at the bottom of the economic scale.

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Exactly. Just the other day Citibank put a gun to my head and said 'charge a big screen TV or prepare to meet your maker!"... :blush:

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Not from the overuse angle, but rather from the EXORBITANT interest they're allowed to charge people who fall behind. It's ridiculous. They're allowed to charge more than 20%, yet if you or I tried something like that, we'd be charged with loan-sharking.

 

Again, many people fall into bankruptcy for perfectly legitimate reasons.

 

And to say that people who go into bankruptcy get away scot-free is ridiculous, too.

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Exactly. Just the other day Citibank put a gun to my head and said 'charge a big screen TV or prepare to meet your maker!"... :blush:

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My biggest problem is the sheer amount of money they will "loan" to people - especially people who are obvious credit risks (especially those who already have a bankruptcy to their credit but still manage to have another 50K at their disposal). You and I make it up because we pay our bills. It's a vicious circle that they didn't just make better.

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From the same column:

 

"A recent Harvard study shows that nearly half of all personal bankruptcies in this country are caused by costly illnesses and medical bills. And surprisingly, more than three quarters of the debtors who sought court protection from creditors had some health insurance coverage at the onset of the illness that triggered bankruptcy."

 

for 1500 years in most of Europe, charging excessive interest was a sin in which Dante had a place in hell for. The Usurers - now we just accept it.

 

Most of us are one medical emergency away from bancruptcy.

 

But with no bankrutpcy, I guess we can bring back debtor prisons.

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It's the Credit Card companies' business practices that cause the bankruptcies in the first place.

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I don't think so. If someone can't control themselves with credit, then it's their fault. Most people in credit trouble will tell you this themselves.

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Not from the overuse angle, but rather from the EXORBITANT interest they're allowed to charge people who fall behind. It's ridiculous. They're allowed to charge more than 20%, yet if you or I tried something like that, we'd be charged with loan-sharking.

 

Again, many people fall into bankruptcy for perfectly legitimate reasons.

 

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You have a point about the interest rate, and that can be taken care of in future legislation. The rates are capped by federal law, and are very high. But a big part of that is the rationale that credit card issuers were losing money on high rosk accounts because of the loophole in the bankruptcy law. Now that the loophole has been fixed, I can see the validity to reset those rates lower, if the new law reduces the costs of the credit card issuers.

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Now we're going to expect the credit card companies to moniter people's ability to handle their debt? 

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When's the last time you got a loan or a credit card without a credit check? Credit card companies monitor people's ability to handle their debt ALL THE TIME.

 

Then they ignore what they find, and send $24000 in balance transfer checks to someone with an $8k limit, as Providian used to do...

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When's the last time you got a loan or a credit card without a credit check?  Credit card companies monitor people's ability to handle their debt ALL THE TIME. 

 

Then they ignore what they find, and send $24000 in balance transfer checks to someone with an $8k limit, as Providian used to do...

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All with the intent of creating a debt-slave. The credit card companies are unethical at best, and now they've taken away the remedy of last resort for the average person. Way to go.

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All with the intent of creating a debt-slave. The credit card companies are unethical at best, and now they've taken away the remedy of last resort for the average person. Way to go.

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I know the CEO of a company that had about a dozen math PHDs working on a software program to figure out the best credit card offer to send to people so that they wouldn't cancel a card that they intended to cancel. I can't remember which bank it was, but the program ended up making millions for the bank from customers who were trying to cancel their cards. The credit card companys have some of the best minds in the world trying to figure out ways to keep you in debt for life. It's not exactly an even playing field.

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You have a point about the interest rate, and that can be taken care of in future legislation.  The rates are capped by federal law, and are very high.  But a big part of that is the rationale that credit card issuers were losing money on high rosk accounts because of the loophole in the bankruptcy law.  Now that the loophole has been fixed, I can see the validity to reset those rates lower, if the new law reduces the costs of the credit card issuers.

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Why don't you look up who the biggest contributors are in most political campaigns: MBNA. And let me tell you, that's not for nothing. ;)

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I know the CEO of a company that had about a  dozen math PHDs working on a software program to figure out the best credit card offer to send to people so that they wouldn't cancel a card that they intended to cancel.

Interesting, but doesn't surprise me. My sister-in-law is a designer who once showed me a set of color charts used by a color consultant she knows - like a ring of paint color examples, but with the specific thoughts and emotions each color evokes in people. The color consultant advises detroit what colors to put on their line of cars this year, recommends paint schemes for stores and restaurants, etc. He was hired by a client to advise the best color to make a specific mailing, in which the client had a huge stake in. The client saved an enormous amount of money in refund checks that were never cashed, many of them having been thrown away unopened due to the unappealing design.

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Why don't you look up who the biggest contributors are in most political campaigns: MBNA. And let me tell you, that's not for nothing. ;)

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I love sticking it to MBNA for free products!

 

At games the "Harvest info" about fans and give them free tee-shirts etc...

 

When I get the card, I cancel.

 

Then again, they do put their name on the product. :):) I mostly wear them at work when I do the crappy chores! :)

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He was hired by a client to advise the best color to make a specific mailing, in which the client had a huge stake in. The client saved an enormous amount of money in refund checks that were never cashed, many of them having been thrown away unopened due to the unappealing design.

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That I have to agree. Lazy people. People don't know what refunds they have out there?

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All with the intent of creating a debt-slave. The credit card companies are unethical at best, and now they've taken away the remedy of last resort for the average person. Way to go.

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The answer is simple, pay off your charges in full each month. If you cant then thats sign #1 that you're charging too much and you need to cut back. If you wont do that then who's fault is it again?

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The answer is simple,  pay off your charges in full each month.  If you cant then thats sign #1 that you're charging too much and you need to cut back.        If you wont do that then who's fault is it again?

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That's all well and good. But let's say you lose your job unexpectedly. Now let's say that you're car dies too and your kid needs medical care that you can't pay for. That money's got to come from somewhere and even if you were to find a job later, you'd be in a huge hole and now you belong to them.

 

Literally.

 

Anyone defending the credit card companies is nuts. They make PLENTY of money doing things that if you or I tried to do would get us landed in the klink for racketeering.

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