From the March-20, 2002 issue of Credit Union Times Magazine • Subscribe!
CUNA's message to bankruptcy reform conferees: "get on with it"
<p>WASHINGTON-CUNA Vice President and Senior Legislative Counsel Gary Kohn summarized a recent letter from CUNA President and CEO Dan Mica to members of the bankruptcy conference as "urging them to complete their negotiations and get on with it." The financial services industry has been waiting close to five years for a bankruptcy reform bill to pass. Last year's efforts were thwarted by the September 11 attacks, while in 2000, then-President Bill Clinton pocket vetoed the legislation. But, with bankruptcy filings increasing, CUNA argues that reform is even more important now. "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," Mica wrote. Credit unions charge-offs due to bankruptcy cost approximately $700 million last year. CUNA expects a full 25% increase in bankruptcies from 2000 to 2001.</p>