Tougher Bankruptcy Law Haunts Card Issuers, For Now

Law360, New York (February 9, 2006, 12:00 AM EST) -- After spending more than eight years and $100 million lobbying for tougher bankruptcy laws, early estimates suggest that credit card companies are seeing their efforts boomerang with losses of hundreds of millions of dollars in uncollectible debt.

According to a recent Federal Reserve survey, the stampede of consumer bankruptcy filings induced by the enactment of last October’s bankruptcy law has increased fourth-quarter chargeoffs taken by banks on credit card loans.

While the survey, released earlier this week, showed that only about half of the banks reported...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.