same thing happened to many after 9/11, though the displacement was
not as large, people were getting collection notices on dead spouses/
childrens debts, etc.
Begin forwarded message:
I have been working on a SCAP case this week with a lawyer from New
Orleans whose law firm has temporary relocated to a hotel in
Houston. Today, he posted the following on the group blog run by
Professor Elizabeth Warren:
http://warrenreports.tpmcafe.com/story/2005/9/2/101357/1816
The lawyer from New Orleans is named Mickey Allweiss
***
I am a name partner in a mid-size New Orleans law firm supported by
an excellent staff of decent and devoted employees. My partners and
I work hard and respect those who work hard with us. In the wake
of Hurricane Katrina, we face, and our staff most certainly faces,
an uncertain and challenging future. Those futures (and the futures
of all victims of Katrina) are made even more daunting by otherwise-
normal commercial practices that, in these circumstances, may
compound the financial devastation - namely, charging interest and
late fees on credit card debt.
Using our firm as a typical example reveals just how devastating
the storm has been. Until today I could not locate all of my
partners. Obviously we cannot perform necessary banking functions.
We cannot receive mail. We cannot communicate with or visit our
office. We cannot find many clients. We cannot collect fees or
send bills. Consequently, there will be a significant delay in
revenue collection and, as an obvious by-product, a very real
threat to our ability to pay or even maintain all employees.
Yesterday I made calls to ask for some delay on behalf of our
employees, but I was turned down flat. Despite the circumstances,
credit card companies insisted upon payment and, on at least two
separate occasions, confirmed that accounts will continue to accrue
interest and that they will charge fees for late payment. In the
face of this overwhelming tragedy, which has left over one million
people with uncertain futures, such a position is scandalous.
To avoid this additional insult, I propose that credit card
companies be required to honor, at a minimum, a 90 day moratorium
on interest charges and late fees on personal credit cards issued
in affected area codes. President Bush has asked all American
citizens to contribute to the recovery effort; surely he means
corporate citizens as well. As a business owner, I know the
importance of the bottom line. But losing or deferring a small
portion of a company's overall profit is a small price to pay to
enable those who haven't already drowned to try to stay just a
little bit above still rising waters.
***Relatedly, Elizabeth Warren reports that Congress is calling an
emergency session for next Tuesday to do something about the
aftermath of Katrina. Representatives Conyers, Jackson Lee and
Nadler have an idea: let's take another look at the bankruptcy
legislation. It seems that in the haste to adopt the credit
industry version of the bill, some amendments to cut a little break
for the victims of natural disasters were defeated. Now everyone is
scurrying to re-read the those amendments to see just how hard this
new bankruptcy law will fall on families and small businesses
thrown into financial chaos in the wake of Katrina.
---
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