“REFORM” CHANCES LOOKING DIMMER

September 9, 2000

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Bankruptcy Reform is looking dimmer and dimmer. Below is statement from Minority Leader Tom Daschle reflecting his thoughts on bankruptcy reform.

Reported from a regular news briefing, Senator Daschle was asked, “So is bankruptcy dead for the year?” Daschle stated “it’s increasingly dying a slow death the way it looks. And it is because the Republicans inexplicably are now putting even new provisions in. Now they have one on having to do with rent [to-own - staff member clarifying as "rent-buy" options]. Daschle continues that “it’s a rent-buy option that came out of nowhere. It’s a new provision that is, I guess, quite onerous to renters, and that’s another matter.” They’ve now — even though we thought the Hatch matter was resolved, is back in full force. So they’re retrenching, they’re moving backward rather than forward. And the more they move back, the more problematic it becomes. And with limited time left, I would say that it has the least possibility — I could phrase that better. There are reduced prospects of its passage today, substantially reduced, from what it was prior to the August recess.”

Daschle interrupted on another matter, wanted to continue his thoughts on bankruptcy. “Going back to your question about bankruptcy, it [Republican White House proposal] adds a controversial new provision to facilitate debt collection efforts by rent-to-own firms. Rent-to-own firms are perceived by consumer advocates as loan sharks that prey on lower-income working families.”

“As I say, this was a provision that — we don’t know where it came from [I do, Rent-to-Own Assn. and Rep. Dick Armey] — But now it’s part of the official offer from our Republican colleagues, in addition to the issue regarding check bouncing that Senator Hatch had advocated that we thought was no longer a factor in these negotiations.”