Notice more credit card solicitations in your mailbox? If so, it is no illusion. Attorney Cathy Moran, writing in her informative "On the bankruptcy soapbox" bankruptcy blog reports that since the October, 2005 effective date of the new bankruptcy law, credit card companies have sent out 8 billion solicitations, an increase of 1.5 billion from the year before.
It seems that the credit card companies know what bankruptcy lawyers know all too well – under the current bankruptcy law filing for relief has become complicated, expensive and time consuming. With the doors to the bankruptcy courthouse closing, why not extend more credit to struggling families knowing that bankruptcy is less of an option.
The 2005 changes to the bankruptcy law has the Orwellian title – Bankruptcy Abuse and Consumer Protection Act of 2005. Maybe there’s some consumer protection in there somewhere – I just have not found it yet.
[tags] BAPCPA, credit card solicitations, credit card offers [/tags]