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 lesson should be constantly enforced that though the people support the Government, Government should not support the people.”
—Grover Cleveland (1837–1908)
“The moral qualities are more apt to grow when a human being is useful, and they increase in the woman who helps to support the family rather than in the one who gives herself to idleness and fashionable frivolities.”
—Elizabeth Cady Stanton (1815–1902)
“At the Carter Center we work with victims of oppression, and we give support to human rights heroes.”
—Jimmy Carter (James Earl Carter, Jr.)