[Congressional Record Volume 147, Number 27 (Monday, March 5, 2001)]
[Extensions of Remarks]
[Page E274]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2001

                                 ______
                                 

                               speech of

                            HON. TIM ROEMER

                               of indiana

                    in the house of representatives

                        Thursday, March 1, 2001

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 333) to 
     amend title 11, United States Code, and for other purposes:

  Mr. ROEMER. Mr. Chairman, I rise in support of H.R. 333, the 
Bankruptcy Prevention Abuse and Consumer Protection Act of 2001. I am 
proud to rise as a cosponsor of this important legislation and am 
pleased to join with a bipartisan majority in the House of 
Representatives that voted to require debtors to repay some or all of 
their debts when they are financially able to do so.
  This bankruptcy reform measure promotes personal responsibility. I 
firmly believe that families declaring bankruptcy deserve a safety net 
to give them a fresh start following an unanticipated or devastating 
financial loss. However, bankruptcy should not be used as a loophole to 
allow reckless individuals to accumulate large debts and then simply 
walk away from them.
  Ultimately, consumers pay the price for bankruptcy filings in the 
form of higher taxes and higher interest on mortgages, student loans 
and car payments. As the U.S. economy continues to struggle, American 
families are paying more for home heating and gas prices. It is simply 
not fair that each household is effectively being charged $400 per year 
as a result of bankruptcy filings. That is why changing the bankruptcy 
laws has been on the congressional agenda for several years and why I 
have consistently cosponsored and voted for this legislation.
  At the same time, I am concerned that H.R. 333 does little, if 
anything, to encourage credit car companies from curbing abusive and 
aggressive marketing practices. An increasing number of young consumers 
and the elderly are being inundated with daily mass-mailing which offer 
misleading promises of ``pre-approved'' credit, low initial rates, low 
annual percentage rates and free benefits such as frequent flier 
mileage. Many households with minimal knowledge of finance often fail 
to read the fine print while taking on debt burdens that they cannot 
repay, or which push them closer to the brink, so that any setback to 
their financial situation sends them directly to bankruptcy court.
  For these reasons, I supported the motion to recommit the bill, which 
would have prohibited credit card companies from issuing credit cards 
to anyone under 21 years of age unless a parent acts as a co-signer or 
the individual demonstrates an independent means of income. This is a 
common sense measure that would have strengthened the bill to protect 
younger consumers from destroying their credit ratings. I am hopeful 
this proposal is approved by the U.S. Senate when it moves to consider 
the bill.

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