Banks and credit card companies lobbied Congress hard for the prohibition against repeated bankruptcy filings. They argued that irresponsible consumers run up debt and then blithely walk away. You might think that, if this were true, lenders would avoid customers with a history of bankruptcy. This is far from the truth though. Research shows us that lenders actually target actually target those consumers, repeatedly sending them offers to borrow money. The reason is simple: These consumers are much more likely to take cash advances, which carry very high interest rates. And, they must pay these loans for the simple reason that they cannot declare bankruptcy again. Is this ethical?

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The practices described where lenders target consumers with a history of bankruptcy for highinterest ... View the full answer