Democratic presidential candidate Senator Barack Obama, on a campaign tour of Southern California, has vowed to change bankruptcy laws and cap interest rates, it was reported Thursday.
During what his campaign dubbed a "Roundtable on Economic Opportunity" in Los Angeles, Obama, a Democrat from Illinois, called for creating an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts incurred through medical expenses, according to the Los Angeles Times.
Obama's proposal also includes extending the 36 percent limit on payday loans to members of the military to all Americans; encouraging banks, credit unions and Community Development Financial Institutions to provide affordable short-term and small dollar loans; establishing a credit card bill of rights and significantly increasing emergency pre-foreclosure counseling resources, the paper said.
California has the highest number of foreclosures in the nation, and the economic impact on this state is expected to over 23 billion dollars," said Obama, who kicked off the California tour Wednesday.
Obama blamed the federal government for not regulating lenders.
"It's an example of how when the federal government falls down on the job and is listening more to the special interests than it is to ordinary working families that we end up getting into these kinds of crises," he was quoted as saying.
Obama has proposed creating a 10 billion-dollar fund to help prevent foreclosures, eliminate some taxes and fees for families who must sell, and offer counseling to homeowners.
He also proposed changes in the consumer credit card industry. "People are getting caught in a credit card system that is unfair," he said, faulting "teaser rates" that skyrocket, interest charged on late fees and hidden fees.
Source: Xinhua
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