Bankruptcy Rules

Re “Congress Pushes for Bankruptcy Overhaul,” June 1: While I can see the obligation certain members of Congress might feel toward banking and credit companies located in their jurisdictions, the market should determine the relative cost of credit and not the government. It is easy to see why Visa, MasterCard and credit-issuing banks want to be able to prevent consumers from filing for bankruptcy. What should be equally apparent is that these companies are already compensated for this risk in the form of the generally exorbitant interest rates attached to credit cards.

The issue is economic, not moral. Visa International’s Michael McGarry seems to imply the reverse by his statement, “It is the only social welfare program not based on need. Society is picking up the tab when people don’t repay their debts.” If credit issuers weren’t fairly compensated for their risks under the current bankruptcy system, why would so many of them be sending you mailers to offer you credit?

RYAN SIEMENS

Newport Beach