Bankruptcy Irony

Fron the NY Times - read the rest here.

It might seem counterintuitive that many credit card companies would inundate the recently bankrupt with solicitations for new cards. It's especially perplexing that those same companies would do so after having spent more than eight years and $100 million lobbying Congress to protect them from irresponsible borrowers with a draconian new bankruptcy law.

But the truth is that credit card companies aren't all that interested in customers who pay their bills in full every month. They really want the so-called revolvers, people who don't cover their balances and pony up those juicy interest payments and fees. The tighter repayment provisions in the new law will encourage companies to trawl for even less-qualified customers.

This is all a stark reminder of just how one-sided the new bankruptcy law is. While access to Chapter 7 bankruptcy has been sharply curtailed in the law, which went into effect in October, credit card companies are welcome to keep stuffing mailboxes with pre-approved cards.