Why Do Companies Market to Individuals in Bankruptcy?
Why do companies, especially credit cards, market to individuals in Bankruptcy? The simple answer is that individuals who file for bankruptcy (7) are prohibited from receiving another discharge for 8 years. But, is that really the answer? Are these companies afraid that the individual will file bankruptcy again? I don't think so. The credit card companies like Visa, Mastercard, American Express, and Discover know that individuals will have a tough time changing their spending habits, and therefore, why not try to lure these individuals back into the charge and pay lifestyles that they may have once led. Kind of like a dope dealer pedaling dope to someone recently out of rehab.
It is different for the local car companies. Before the change in the bankruptcy laws, there were several local car dealers sending out letters to people in bankruptcy with offers of new cars or clean and reliable used cars. These marketing ploys were directed at individuals for the sole purpose of profit. In my opinion, the companies were playing to the emotional heartstrings of bankrupt debtors with offers like "Let us help you rebuild your credit." or "We will help you when the others turn you down."
It made me sick to think that these companies would do anything to make a buck.
This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Debt Law Network, Credit Law Network and the Mortgage Law Network. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney and sits on the Board of Directors of the American Board of Certification. Mr. Dellutri is also an active member of the National Association of Consumer Bankruptcy Attorneys and National Association of Consumer Advocates. Mr. Dellutri maintains offices in Port Charlotte, Naples and Fort Myers, Florida.
