We All End Up Paying for Unfair Bankruptcy Laws
Stephen Brobeck's claim - in his Oct. 1 response ("Skyrocketing bankruptcy is propelled by easy credit," Letters) to Lloyd Bentsen's Sept. 19 Op-Ed piece ("Get tough on bankruptcy laws") - that credit card marketing is responsible for the rise in personal bankruptcies is not only naive, but contrary to what available data indicate.
According to Federal Reserve Board data, credit card debt accounts for just 3.7 percent of total consumer debt - hardly a significant enough amount to trigger the record number of personal bankruptcies filed recently. In fact, as Federal Reserve Board Chairman Alan Greenspan stated in testimony before the Senate Banking Committee earlier this year, "There is no direct relationship between credit card delinquencies and the rise in personal bankruptcies."
Bank card issuers employ sophisticated prescreening and underwriting techniques to ensure that cards are issued to individuals whose credit history, income and other factors indicate that they can successfully manage the credit extended them. …