Elizabeth Warren over at the intellectually rigorous Credit Slips blog points out the correlation between tightened bankruptcy laws and credit card offers increasingly inundating the American consumer.

In 2005, Congress gave the credit industry what it wanted: tighter bankruptcy laws. In 2006, the credit industry responded by mailing out 8 billion credit card solicitations–up 30% from 2005…

…If debtors have no bankruptcy option, Ronald Mann points out that creditors can keep them in the sweat box longer. Perhaps if bankruptcy were outlawed altogether the mailings would go to 16 billion, and if debtors’ prisons were reinstituted, could the mailings top 25 billion? Ah, the possibilities.

It’s just business. Emboldened by the knowledge that fewer suckers can jump the line, creditors are more willing to bait the hook. — BEN POPKEN

You Are Pre-Approved–8 Billion Times [Credit Slips]
(Photo: amishsteve)

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