Support
Support for the act mostly came from banks, credit card companies, and other creditors.
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Since banks, credit companies and other creditors are the ones who must bear the losses for debts discharged through bankruptcy, their lobby power was a great supporting factor to eventually prevailing and forcing legislatures to pass the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
It was widely claimed by advocates of BAPCPA that its passage would reduce losses to creditors such as credit card companies, and that those creditors would then pass on the savings to other borrowers in the form of lower interest rates. These claims turned out to be false. After BAPCPA passed, although credit card company losses decreased, prices charged to customers increased, and credit card company profits soared.
Read more about this topic: Bankruptcy Abuse Prevention And Consumer Protection Act
Famous quotes containing the word support:
“The interest in Wisdom is fading. Soon there will not be enough left to support the aphorism, even though it tries to amuse by half-mocking the Wisdom it propounds.”
—Mason Cooley (b. 1927)
“There is much to support the view that it is clothes that wear us, and not we, them; we may make them take the mould of arm or breast, but they mould our hearts, our brains, our tongues to their liking.”
—Virginia Woolf (1882–1941)
“Universal suffrage should rest upon universal education. To this end, liberal and permanent provision should be made for the support of free schools by the State governments, and, if need be, supplemented by legitimate aid from national authority.”
—Rutherford Birchard Hayes (1822–1893)