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 first reason for psychology’s failure to understand what people are and how they act, is that clinicians and psychiatrists, who are generally the theoreticians on these matters, have essentially made up myths without any evidence to support them; the second reason for psychology’s failure is that personality theory has looked for inner traits when it should have been looking for social context.”
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“The wisest thing a parent can do is to let preschool children figure out themselves how to draw the human figure, or solve a whole range of problems, from overcoming Saturday-morning boredom to dealing with a neighborhood bully. But even while standing on the sidelines, parents can frequently offer support in helping children discover what they want to accomplish.”
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“Surely, ‘tis one step towards acting well, to think worthily of our nature; and as in common life, the way to make a man honest, is, to suppose him so ... so here, to set some value upon ourselves, enables us to support the character ... of generosity and virtue.”
—Laurence Sterne (1713–1768)