NEWS: Sometimes Being An Asshole DoesnÂ’t Pay Off

POLITICS: Sometimes Being An Asshole Doesn’t Pay Off

In 2005, Congress passed one of the worst bills in the history of our country: The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It was crafted by the credit card industry and passed with bi-partisan support, then shoved up our collective asses.

In 2005, 1.6 million Americans were filing for personal bankruptcy protection. The process is similar to corporate bankruptcy and allows debtors to come up with creditor-reviewed and court approved plan to write off some debts, pay off some and get a fresh start. But that obviously wasn’t working for credit card companies. After years of giving cards to unworthy recipients, they wanted them to become financial slaves instead of changing their lending practices. The bill basically rewarded the credit industry's egregious behavior, and encouraged more of the same. The bill did nothing to rein in credit card solicitations or put caps on interest rates or late fees, over-the-limit fees and other penalties. Congress has held hearings on the deceptive practices that credit card companies use to default on agreements and FearTheReaper has officially designated them as “Motherfuckers”.

So, the bill forced more people to file under Chapter 13, which forces consumers to pay back debt over five years. They had been filing under Chapter 7, which allowed them to keep some assets, while getting rid of debt. The Senate rejected 25 Democratic amendments to lessen the impact on bankrupt Americans, including one that would let people keep their homes if their debt was the result of medical expenses.

Not surprisingly, this has affected people who live on the edge, take home a paycheck, still barely get by every month, canÂ’t afford any sort of hiccup in their lives and quickly fall into debt if their car breaks down or they get sick.

Ah, check out that last sentence there and focus on these words: Home mortgage lending. Anyone noticed a problem in that area lately? Turns out when you fuck people over, you get fucked back just as hard.

Two words, Washington Mutual: Suck it.

People are paying their credit card debt over their house payments because they really donÂ’t have a choice. They canÂ’t declare bankruptcy anymore and save their home, so they are walking away from their homes.

Even when they do declare bankruptcy, the mortgage rates are resetting six months later to a level that they cannot afford. That then hurts the mortgage companies, some who are the same who lobbied for the restrictive bankruptcy bill, like Washington Mutual.

You made your bed, big companies, now lie in it.

Thank god they're getting screwed for this.

Yeah, I'm sure it's going to affect a lot of CEOs x-mas bonuses.

reap the whirlwing mo-fo's. it's having an knock on effect with banks in europe who lent money to american institutions with sub-prime lending. a few banks here have had share prices drop due to the this and the weakened dollar too.

"Hooray! I'm fucked, but now you're fucked, too! We're all fucked together!"

normally schadenfruede tickles me in a special way, but when it really means we're all fucked equally, it just isn't working for me.

Well when you're a predatory lender bordering on loan shark interest rates what would you expect.

The irritating thing is that the less money you have, the higher your interest rate is on your mortgage and your credit cards. So they're taking more money out of the people that can less afford it, and then playing victim when it blows up in their faces. Bite me. I don't feel sorry for you, assholes.

Clidna is a little bitter because she has a subprime mortgage at 8 fucking percent.

Just another reason to be glad that I don't work collections at a mortgage company anymore.

Does anyone force you to enter a credit agreement? I don't think so. Read the paperwork, you agree to X,Y,Z. Its all in there up front. Don't bitch and moan because the lenders want their due. The mortgage companies have homes to sell now, just as was agrreed upon by them when they loaned out the money. They don't like that either but they are bound as is the lendee.

It's not too late to buy gold, my friends.

No doubt people should understand that they need to honor their debts and it is clear people need to pay their mortgage, but the bill does not balance responsibility between individuals or families in debt trouble and creditors whose usurious practices have led to the rise in bankruptcy. As the article mentions, we've all seen the reports and investigations of the deceptive trade practices employed by the credit companies...the delays in procesing payments causing late fees and triggering even higher interest rates, etc. So far nothing substantive has been done to curtail these practices. Sure, there are bad apples out there....but there are a sizable percentage of good people who are caught up in the endless credit trap eventhough they try hard to pay off their debts. Obviously it creates a cycle we will all end up having to pay for when we do another bail out like the 80's S&L bail out. What a fiasco.

I agree with FearThereaper, they are a bunch of motherfuckers!

This is why I am plotting and saving to get myself out of all debt in the next few months. I shall then introduce my credit cards to my new friend, Mr. Shredder.

Then I will go on the All Ramen diet. I hear they have new flavors.

Not necessarily true. Many of the least sympathetic people are those who have been there.

It just doesn't make them any less inhumane.

Yes, circumstances CAN force people to borrow money, even if they know full well they're fucked. Just because no one's literally holding a gun to your head doesn't make the practice ethical or acceptable.

The financial institutions mentioned in the article may have taken a financial hit, but they're still making a profit.

On one hand, I'd really love to see some credit and loan companies really take a hit up the ass.

On the other hand, how many more consumers would be screwed if this happened?

Maybe the most satisfying solution would be to lock up some CEO's in a cage with a bunch of horny gorillas.

I assume the next logical step is for credit card companies to open debtor's prisons. The American Express Correctional Facility has a nice ring to it.

AGREED!!!!

dear FearTheReaper,

this is some of your finest work. finally, you actually have something... just kiddin'.

Fixed.

Ooohhh. Snaptardation!

Credit card agreements, fine, maybe--but don't even tell me that you're able to read the fine print on any of those various fucked-up kinds of mortgages they've got and understand what they mean. 99% of the college-educated population couldn't understand what the fuck those things are saying. "Up front"? What lending or credit contracts are you reading?

Additionally, no one plans getting sick or having their car blow up. But quite often you need both your health and your car to continue working and thus getting paid, and thus paying off the debts. Nobody buys a home with the intension of going bankrupt, they buy it in the hope of actually owning it one day and getting OUT of debt.

To be fair...that's quite the assumption you're making.

-TM

But, um, what about the fuck-twats that don't know how to pay bills and bought into the "quick-fix-get- 'cha- in- the- door" adjustable rate mortgages?....I mean, I'm just sayin' is all....I seriously think that in order to graduate from high school (because, as we know not everyone goes to college) it should be MANDATORY that in your senior year, you take a full year of financial planing, or something of the sort. Oh, and by the way, this comes from a someone who has not had to choose between rent and food for the sheer fact that I PLAN for times when we may be short, and I pay my bills on time!