Social Security: smoke screen for Bankruptcy Abuse Prevention & ....

Bankruptcy Abuse Prevention and Consumer Protection Act

http://www.campusprogress.com/features/142/no-exit

"No Exit
Your credit card companies might be a week away from rewriting federal law so that you will never, ever, get out of debt.

By Heather McGhee

Your credit card companies are hoping that a bill they’ve been pushing since the Clinton years will finally slide through Congress this week. From there it would land on the desk of a President whose signature they’ve ensured with over $1.4 million in campaign contributions. It’s the “Bankruptcy Abuse Prevention and Consumer Protection Act” (S.256 & H.R.685) and it would allow banks to keep chasing you if you went completely broke, even after you’ve filed for bankruptcy and ruined your credit—indefinitely.

But shouldn’t I have to repay my debts, you might ask? Sure, up to a point. But there’s a reason why we abolished debtor’s prisons in the 1840s. Think of our beloved airlines. They’ve gone completely broke, but the government has decided that it’s better for everyone to let them try to dig out than to simply unleash the dogs. Likewise, you’re young; you’ve got a family to start, a house to buy, a career to start and then tend to, and taxes to pay. Put simply, you’re worth more to your fellow Americans on your feet than over a barrel. It’s a time-honored American value, and it’s never been more needed than in today’s brutal economy.

Problem is, the credit companies don’t quite share our values. Sure, Americans paid them $24 billion in late and other penalty fees last year, on top of $85.5 billion in interest. Sure, by the time folks file for bankruptcy, they’ve been charged upwards of 29 percent APR, and have usually already repaid the original amount borrowed, plus thousands in interest and fees that just won’t quit. And sure, 90 percent of bankruptcies are caused by a medical catastrophe, a divorce, or a job loss – not reckless binge shopping trips. But this isn’t just about going after loose change in the pockets of a few young people and families backed into a corner—although they’ll gladly take that, too.

Bankruptcy “reform” is also about making sure that creditors’ new strong-arm tactics – which include raising your rate if you’re a day late, and the insane new universal default clause (i.e. “miss a payment on your car, double your MasterCard APR”) – will remain profitable in the long-term. Here is how the current calculus works: the more they abuse their customers, the more likely we are to flip them the bird and file. With Chapter 7 – the heart of bankruptcy protection – dismantled, the math is much simpler: the more they abuse their customers, the more they abuse their customers – indefinitely.

So, do you see why if you’ve got a credit card (or 4 or 5), you’ve got a problem with this bill? Senators are debating S.256 every day this week. It’s an uphill battle, even Democrats who denounce Bush’s handling of the economy are on the record in support of this bill. Perhaps that’s because the industry has been Washington’s single largest contributor for years. Or perhaps it’s because they haven’t heard from you."



This is the real prize for the corporate piggies. We all have our eyes on Social Security and it's not even on the table.

.. and tort 'deform.' They've probably got a few more rape and pillage plans up their sleeves as well. This is an all-out war on the working class ... and nobody will wake up until they're in Dickensian England.

If they're successful in inflicting damage on Social Security, it'd be a bonus for the robber barons. I'd be willing to bet that creditors would be permitted to confiscate Social Security benefits, too .. which is not allowed under current law.

and I use it ONLY for emergencies...and I have my internet service and vet insurance direct-billed to the credit card, and cut the credit-card company a check once a month for the amount of those two items.

The only reason for that is to keep the card ACTIVE.