Letter to Senator Grassley Regarding Amendments to S.256, the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005
February 16, 2005
The Honorable Charles E. Grassley
United States Senate
135 Hart Senate Office Building
Washington, DC 20510
Dear Senator Grassley:
On behalf of the Credit Union National Association (CUNA) and America's nearly 86 million credit union members, I am writing to encourage you as a member of the Judiciary Committee to vote against all amendments to S. 256, the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005", when it is considered by the Committee tomorrow.
Credit unions recognize that many people legitimately need the option to declare bankruptcy. We are, however, very concerned about the cases of abuse by those who file Chapter 7 and totally walk away from their debt, even though they clearly have the ability to repay all or part of that debt. Because Credit Unions are member-owned cooperatives, losses incurred through bankruptcy come directly out of our members' pockets.
This legislation, which carefully balances these issues, has been extensively debated for over 9 years now. The adoption of amendments, no matter how worthy, will disrupt this careful balance and would forestall the enactment of bankruptcy abuse reform legislation that is of vital importance to our credit unions and their members.
We strongly support S. 256 in its current form and urge you to vote against all amendments.
Daniel A. Mica
President & CEO
Credit Union National Association