Letter to members of House-Senate conference committee on bankruptcy abuse reform
March 7, 2002
On behalf of the Credit Union National Association (CUNA) and 82 million credit union members nationwide, I am writing you as a member of the conference committee on bankruptcy abuse reform legislation to urge you to reach a consensus on this important legislation. CUNA has been a vocal supporter of this issue for years, and is pleased the House conferees made an offer last week. We view this as an indication of the desire to reach an agreement and send the bill to the President.
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