Letter to House Speaker J. Dennis Hastert regarding bankruptcy abuse reform legislation
February 15, 2002
Dear Speaker Hastert:
On behalf of the Credit Union National Association (CUNA) and 82 million credit union members nationwide, I am writing to request your assistance in urging the members of the conference committee currently considering the bankruptcy abuse reform legislation that has passed both the House and Senate to conclude their business as soon as possible. As you know, CUNA has been working with your office since the beginning of this debate on bankruptcy abuse, and we appreciate your leadership and assistance thus far.
The need for bankruptcy abuse reform is greater than ever. The number of bankruptcy filings in the United States continues to increase, and our economists are predicting a record year for 2001 as they await the final official numbers. Additionally, the number of bankruptcies of credit union members continues to climb. CUNA expects the increase in bankruptcy filings in 2001 to increase by over 25% from 2000. This shows the urgent need to reform our bankruptcy system. Credit union chargeoffs related to bankruptcy last year will be approximately $700 million.
I have enclosed a copy of results taken from CUNA's annual national voter survey. As disclosed in the attached memorandum, you will see that even with the recent bad economic news and major corporate bankruptcies, opinions are still strong that the current system is being abused and needs to be corrected. I hope you find this information to be helpful in your efforts to bring this conference committee to a successful close.
Please let me know what additional steps CUNA can take to assist you in passing bankruptcy abuse reform. Thank you for your consideration of this urgent matter.
Daniel A. Mica
President & CEO