WASHINGTON-Shoreline Credit Union President and CEO Ken Beine told members of the Senate Judiciary Committee that bankruptcies hit his credit unions particularly hard and reform is necessary. In his testimony on behalf of CUNA Feb. 10, Beine told the lawmakers, “Credit unions recognize that many people legitimately need the option to declare bankruptcy. What concerns us, however, are 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 pay all or part of that debt.” He emphasized that S. 256, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, is a solid compromise measure. He provided one example where a couple decided they wanted a “clean slate” for when they got married, so ran up their credit card debts then both filed for Chapter 7 bankruptcy. The credit union ended up losing $3,000, which is passed onto other members of the financial cooperative. But not all bankruptcies are abusive, he reiterated, and he told a story of a middle-aged couple hit with medical bills and loss of employment, who reaffirmed their car loans with Shoreline. “Needless to say, today they are members in good standing, and need only ask to be granted a loan,” Beine said. He stated that CUNA strongly supports three items in bankruptcy reform: a means-based bankruptcy code, financial education, and voluntary reaffirmations. A markup of S. 256 was expected shortly after press time.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.