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Industry News

Lenders counterpoint bankruptcy reform

September 9, 2002

Group says pending legislation could lead to more cases of predatory lending

Inman News Features

A group of 17 U.S. lenders and credit card providers yesterday sent a letter to Congressional leaders expressing opposition to pending bankruptcy reform legislation.

The letter points out that the pending legislation would create a lot more disadvantages to filing bankruptcy, thereby leaving strapped homeowners more vulnerable to predatory lending in the form of inappropriate home refinance loans, according to the Hastings Group.

The opponents of the Bankruptcy Abuse and Consumer Protection Act, H.R. 333, believe the legislation will disproportionately harm vulnerable debtors while rewarding unscrupulous credit card companies and steering homeowners towards predatory refinance loans, according to the Hastings Group.

Copyright: Inman News Service

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