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:
“An ordinary man will work every day for a year at shoveling dirt to support his body, or a family of bodies; but he is an extraordinary man who will work a whole day in a year for the support of his soul. Even the priests, men of God, so called, for the most part confess that they work for the support of the body.”
—Henry David Thoreau (1817–1862)
“Three factors—the belief that child care is female work, the failure of ex-husbands to support their children, and higher male wages at work—have taken the economic rug from under that half of married women who divorce.”
—Arlie Hochschild (20th century)
“No one—man or woman—can have it all without support from the workplace and genuine help at home. Women, regardless of how they have chosen to lead their lives, can now breathe a collective sigh of relief that superwoman is dead.”
—Deborah J. Swiss (20th century)