WASHINGTON The Senate continued to slog through Democratic amendments to the so-called bankruptcy reform bill Thursday.
Lawmakers agreed by a 1-vote margin to table essentially kill an amendment by Sen. Richard J. Durbin, D-Ill., aimed at predatory lenders. The amendment would have invalidated claims by any creditor who engaged in illegal lending practices. Specifically, it would have prohibited a home lender from staking a claim to a borrowers assets if the lender failed to comply with the requirements of the Truth-in-Lending Act.
Sen. Charles E. Schumer, D-N.Y., also introduced an anti-predatory-lending amendment. His would deter securities firms from purchasing high-cost loans from bankrupt originators. The provision would hold the purchasers liable if the loans violated fair lending laws.
The Senate also debated an amendment by Sen. Dianne Feinstein, D-Calif., which would limit the amount of credit lenders could extend to anyone under 21.
Credit card companies target college students who can quickly find themselves swimming in debt and filing for bankruptcy before they even have their first jobs, she said.
Votes are scheduled on these and other amendments when the Senate reconvenes Tuesday.