Consumers Union Washington Office

PROTECT HARD WORKING AMERICAN FAMILIES:
VOTE FOR NADLER AMENDMENT; VOTE AGAINST HR3150

June 10, 1998

Dear Representative:

H.R. 3150 is a flawed bill that will radically reform bankruptcy laws and create a windfall for credit card companies at the expense of hard working families who have fallen on hard financial times. American families deserve Congress’ full consideration of a less onerous approach to bankruptcy reform than is found in H.R. 3150. A more reasonable and balanced substitute has been offered by Representatives Nadler, Meehan and Berman.

We urge you to vote for the substitute offered by Representatives Nadler, Meehan and Berman (Amendment No. 27), and against H.R. 3150 if the substitute is not adopted.

The substitute:

• Provides a fair opportunity for families to recover from financial crisis by eliminating the inflexible means-based approach of H.R. 3150 and adopting a standard based on actual resources, expenses, and income.
  
• Protects child support, alimony, house, and other essential payments by eliminating provisions of H.R. 3150 that would give credit card companies the ability to compete for a bankrupt family’s limited funds.
  
• Protects a family’s financial privacy by limiting creditor access to tax filings, whereas H.R.3150 opens the door and invites "any interested party," including credit card companies or any other creditors, to get personal financial information submitted to the IRS.
  

Even if the substitute is adopted actions of the credit industry, including relentless marketing tactics, should not escape Congressional scrutiny. Unfortunately, members will not have the opportunity to act on irresponsible credit industry practices because amendments addressing these practices were ruled not in order by the Rules Committee. Congress’ failure to address credit industry practices that may contribute to the number of bankruptcy filings will leave American families vulnerable. Without safeguards to ensure that consumers and families are protected from abusive credit industry practices, any efforts by Congress to change the bankruptcy system will be for naught.

Protect hard working American families facing financial crisis -- vote for the Nadler substitute and against H.R. 3150 should the substitute not be adopted.

Sincerely,

Frank C. Torres, III
Legislative Counsel

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