The Law Offices of Kenneth E. Lindauer
Call today for free initial consultation

Newly-minted MA Senator to join banking committee

Massachusetts Senator-elect Elizabeth Warren, who over the years has been noted as a leading bankruptcy expert and a professor at Harvard Law School, will likely join the Senate's powerful Banking Committee. The Banking Committee oversees large financial institutions, including those who issue credit cards to everyday citizens of Massachusetts.

Supporters of Senator-elect Warren see her as an advocate for those who pay high credit card bills unfairly. Prior to her election, played an important role in creating the Consumer Financial Protection Bureau.

Federal law has given the CFPD the responsibility of enforcing the CARD Act, a recent law that prevents credit card companies from imposing sudden and significant interest rate hikes and high late fees. At one time, Warren was favored to lead the CFPB but drew fire from her political critics.

While other efforts to ease the financial difficulties of Massachusetts families are at least arguably laudable, sometimes a Chapter 7 or a Chapter 13 bankruptcy may be the best option for a family to get debt relief when suffering under the weight of massive credit card debt.

Even if a credit card company has otherwise complied with the law, once a debtor files bankruptcy, ordinarily the credit card company must stop its collection techniques until the bankruptcy is complete. At the end of the case, a credit card company may well walk away with nothing. The threat of a bankruptcy may give companies pause before using aggressive collection techniques against a struggling family.

Whether credit card holders will have the benefit of tighter controls on financial institutions remains to be seen; until then, a bankruptcy may still be the best weapon a consumer can use against an aggressive credit card company.

Source: CNN Money, "One of the toughest critics of Wall Street will soon be policing it," Dec. 12, 2012

No Comments

Leave a comment
Comment Information