Commentary

CounterPunch August 20, 2002 The Politics of Bankruptcy Punishing the Poor to Bail Out the Credit Pushers by Ralph Nader When the current Congress convened last year there were lots of promises to curb predatory lenders that peddle credit on outrageous terms to poor, elderly and unsophisticated borrowers. Not only is Congress reneging on its promises, but it is rushing to reward the lenders whose scams have devastated low, moderate and middle income families and forced many into foreclosures and bankruptcies.

Congress' gift to the predatory lenders is a scam artists' dream under the guise of "bankruptcy reform." The sponsors hope that this "lenders' relief" bill can be shoved through Congress in the last days of the session--before the American public realizes its elected representatives are rewarding the banks, credit card companies, finance companies and other financial corporations which have provided the Congress nearly $30 million in campaign contributions to promote "bankruptcy reform" in recent years.