Consumer advocate Ralph Nader is asking that Congress not weaken laws that protect consumers from "credit practices which push consumers into unmanageable debt."
A letter sent to Senate Majority Leader Trent Lott’s office dated March 6 says that while credit card lenders are lobbying Capitol Hill to weaken consumer bankruptcy protections, "the issuers are sharply increasing their direct marketing of cards and expanding their credit lines to already overextended consumers."
Claiming that the pending legislation, which has been passed by the House are "one-sided pro-industry measures that masquerade as ‘bankruptcy protection.’"
Nader’s letter also states that "many consumers will be forced out of the ‘fresh start’ provisions of Chapter 7 of the Bankruptcy Code, and into unaffordable repayment plans under Chapter 13 which will be tantamount to an extended sentence to a ‘debtor’s prison’ without parole."
According to the letter, profits of credit card issuers have increased by nearly 50% during the past two years, and consumer bankruptcy declarations have decreased since the end of 1998. Nader claims the legislation under consideration would be more appropriate in a time of bankruptcy crisis.
A spokesperson for Senator Lott’s office was not aware of the letter and did not have a comment.
