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:
“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)
“Every winter the liquid and trembling surface of the pond, which was so sensitive to every breath, and reflected every light and shadow, becomes solid to the depth of a foot or a foot and a half, so that it will support the heaviest teams, and perchance the snow covers it to an equal depth, and it is not to be distinguished from any level field. Like the marmots in the surrounding hills, it closes its eyelids and becomes dormant for three months or more.”
—Henry David Thoreau (1817–1862)
“American families, however, without exception, experience a double message in our society, one that claims a commitment to families and stresses the importance of raising bright, stable, productive citizens, yet remains so bound by an ideal of “rugged individualism” that parents receive little support in their task from the public or private sectors.”
—Bernice Weissbourd (20th century)