BANKRUPTCY LAW BACKFIRES ON CREDIT CARD ISSUERS
December 12, 2005
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Credit card issuers and other lenders spent a small fortune to get bankruptcy reform legislation passed. Now the new law is costing them even more, MSN Money reported Saturday. An unprecedented spike in filings before reform took effect in fall 2005 is chewing into lenders’ bottom lines, and the subsequent lull is showing signs of being short-lived. Bankruptcy attorneys say their caseloads are starting to pick up, and credit counseling agencies — which provide now-mandatory sessions for consumers who want to file — say they’re seeing significantly more people than they initially predicted. All this is raising questions about whether lenders will profit as much from the new bill as they hoped. Read More
Bankruptcy Law Backfires on Credit Card Issuers
