posted on August 7, 2002 09:41:40 AM new
We've talked about it a few pieces of legislation being proposed in Congress as a "fix" to certain problems. We've discussed it with suspicion and enlightened debate. Now I want to propose an idea that I have. I want each and every one of you to promote the exact opposite of whatever the GOP is trying to promote. Would that help ordinary citizens and make corporations more responsible for their actions? You be the judge:
+ BANKRUPTSY. The Credit Card companies have changes their marketing strategies to increase their profits. Among these changes in standard policy are the marketing of their wares to groups of people whom they previously would never have done so with. One of these is college kids.
College kids are a huge risk. In the past, a credit card company would hardly ever touch a college kid, unless a parent with tremendously good credit co-signed for it. Not so today. They go onto campuses and set up shop in the hallways and hire faculty members to hawk their wares. The kids, most of whom are away from home for the first time, haven't a chance.
I've read about so many stories where the kids get their hands on these credit cards and push them to the limit. In no time at all, these kids are $10,000 in debt or more! With lowered minimum payments, these kids can look at being in significant debt for many years to come. Some of them, being hounded for payments that they can't make and along with the pressures of college, end up taking their own lives just to get out of debt.
The Credit Card companies couldn't care less. What they want is to make it harder for people to go bankrupt, especially the Chapter 13 dissolve-all-debt kind. Why? Because these same high-risk students that the credit card companies used the faculty members to endorse their wares are loosing money because so many students have gone and simply declared themselves bankrupt. And they want an end to that practice. That's what's before congress right now that the GOP is pushing and that's why they want it done. Worse, the banks are getting into the act of targeting students and other traditional high-risk groups as well with consumer loans.
- Instead, imagine if the opposite of the proposed GOP legislation. Instead of making it harder to go bankrupt, make it easier! Instead of destroying your credit rating for seven years, make it only 90 days! Make going Chapter 13 bankruptcy so easy that it amounts to nothing more than filling out a post card and licking a stamp and mailing it to the judge.
What would happen if that legislation ever got through? I can tell you: the moneylenders would stop their predatory practices or else go out of business! They would have to rely upon a person's creditworthiness to have a credit card or a home/consumer loan. In fact, they would be so conservative about it that 90% or more bankruptcies in progress right now might not be happening at all!
THAT is how you fix the problem of too many bankruptcies!
So, if the opposite of what the GOP wants will force corporations to be more responsible and less predatory, isn't that a good thing? And if the GOP is trying to get the opposite into law, aren't they making what they are complaining about that much worse? I mean, does one pour gasoline on a fire to put it out?
+ CAPS ON LAWSUITS. Once again, simply reverse their proposed solution to come to the right one. Instead of a "cap" on the highest amount of a lawsuit, that there be a stated MINIMUM. That minimum cap to be set at precisely the Maximum cap award proposed by the GOP. A legal Minimum with NO MAXIMUM. What does that do? So often a "friendly" judge reverses a jury award or lowers it so low that the corporation doesn't even feel it on their bottom line for that quarter. It is also a guarantee of Justice when a consumer wins a case.
- By the same token, because there IS a minimum award and it IS expensive to the corporation, fewer cases are likely to ever go to court at all and those that do are scrutinized very, very closely for nonsense! It also levels the playing field between the plaintiff's lawyer and the vast army of lawyers that can be summoned up by the corporation's financial might.
I can't see anything wrong with that. It stops "frivolous" lawsuits and helps consumers injured by faulty products. Isn't that what the tort system is all about?
So, these are but two examples. I ask you to try it out on every piece of legislation that is being proposed by the GOP. Ten times out of ten, by reversing their legislation, the end result that you will come up with are consumer protections, corporate responsibility, and common sense every time.
Borillar
"Friends don't let friends vote Republican"
posted on August 7, 2002 04:47:27 PM new
LOL! Those proprosed reversals should certainly shake things up and who knows, in all the ensuing confusion, some honest legislation might result.
From an article on poll results from CBS Market Watch:
"Forty-three percent of consumers surveyed said they're less willing to take on new debt because of the bear market, while 57 percent say their credit use hasn't been affected by the market, according to the Cambridge Consumer Credit Index."
posted on August 7, 2002 06:45:23 PM new
"College kids are a huge risk."
Actually they are not. The CC companies began issuing cards to college students after studies showed the delinquency rate was lower than normal and the CC use more frequent.
It's the same reason why Daewoo had that special program with sweetheart deals of car sales to college kids.
posted on August 7, 2002 09:55:18 PM new
if the present trend continues for any length of time, a college degree will once again be a ticket to working at burger king like it used to be, and you will most likely see the CC companies being more picky about who they are willing to lend to...remember, they have it all figured out well in advance, or they wouldn't weather these downturns as well as they do. It isn't the CC companies that are going belly up these days...when you hear of financial failing of Visa, Mastercard or Amex, it's time to get REALLY worried....
