The nation's credit card companies, not satisfied with how well their own debt collectors are doing, have just enlisted a new ally - Uncle Sam.
The bankruptcy reform bill approved by the U.S. Senate last week does more than just make it harder for people to walk away from debts. It turns the government into a collection agency of sorts, empowered to squeeze debtors to hand over money to those they owe.
It would be hard to argue with the logic of forcing those who can pay to do so. But then, the main beneficiaries of this bill are the same companies that hand out credit cards to any human with a pulse, and sometimes even pets. Why, filing for bankruptcy will actually land you more credit card offers. These companies want the government to crack down on people who spend money irresponsibly, so as to help them cover for their own irresponsibility.
It's also the same industry that made $30 billion last year by engaging in behavior bordering on loan sharking. Jacking up interest rates on a whim and stacking on all sorts of fees, conveniently hidden the fine print, are just some of the ways they do business.
But then, these companies aren't the only ones to benefit. Congress left a giant loophole that lets wealthy people (read campaign donors) hide assets in trust accounts when they file for bankruptcy.
So, with all the other problems facing America - health care, the deficit, terrorism - why did Congress make time to pass something that helps so few?
This is another example how political contributions have polluted the political system of this country, giving us laws that help the wealthy while hurting the masses.
Perhaps with all the free time Congress has these days, it should just amend the preamble of the Constitution to read "We, the campaign donors, ...."
